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Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance...

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Accounting

Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement at a cost of 2% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $34,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow.
\table[[,July,August,September],[Cash receipts,$85,000,$111,000,$150,000
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