Karim Corp. requires a minimum $9,400 cash balance. If necessary, loans are taken to meet...
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Accounting
Karim Corp. requires a minimum $9,400 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,800 and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.
July
August
September
Cash receipts
$
25,400
$
33,400
$
41,400
Cash payments
30,100
31,400
33,400
Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.Round your final answers to the nearest whole dollar.)
KARIM CORP.
Cash Budget
For July, August, and September
July
August
September
Beginning cash balance
$9,800
Total cash available
Preliminary cash balance
Ending cash balance
Loan balance
Loan balance - Beginning of month
$0
Additional loan (loan repayment)
Loan balance - End of month
+
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