Foyert Corp. requires a minimum $7,400 cash balance. Loans taken to meet this requirement cost...
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Foyert Corp. requires a minimum $7,400 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $7,400 and the company has an outstanding loan of $3,400. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow Cash receipts Cash payments October $23,400 26,100 November $17,400 December $21,400 14,600 16,400 Prepare a cash budget for October, November, and December (Negative balances and Loan repayment amounts (if any) should be Indicated with minus sign. Round your final answers to the nearest whole dollar.) FOYERT CORP Cash Budget For October, November, and December October November December Beginning cash balance S 7.400 s 7.400 S 7.400 Cash receipts 23.400 17.400 21,400 Total cash available 30,800 24,800 28,800 Cash payments 26,100 16,400 14,600 Ninterest on bank loan 34 61 Preliminary cash balance $ 4,666 Additional loan (loan repayment) 2,734 Ending cash balance $ 7,400 Loan balance $ 6,134 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 3,400 $ 2.734 6,134 s
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