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  3. a company requires a minimum $10,960 cash balance

A company requires a minimum $10,960 cash balance at each month-end. If necessary ...

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Accounting

A company requires a minimum $10,960 cash balance at each month-end. If necessary
loan is taken to meet this requirement at a cost of 1% interest per month (paid at the er
of each month). Any preliminary cash balance above $10,960 is used to repay loans at
month-end. The cash balance on March 1 is $11,200, and the company has no outstanc
loans. Budgeted cash receipts from sales are: March, $24,800; April, $32,160; and May
$40,400. Budgeted cash payments (excluding loan or interest payments) are: March,
$28,800; April, $30,080; and May, $32,160.
Required:
Prepare a cash budget for March, April, and May.
Note: Negative balances and Loan repayment amounts (if any) should be indicated
with minus sign. Round your final answers to the nearest whole dollar.
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