Foyert Corp. requires a minimum $7,600 cash balance. Loans taken to meet this requirement cost...
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Accounting
Foyert Corp. requires a minimum $7,600 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 $7,600 and the company has an outstanding loan of $3,600. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.
October
November
December
Cash receipts
$
23,600
$
17,600
$
21,600
Cash payments
26,400
16,600
14,400
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 Beginning cash balance $ 7,600 December Total cash available Preliminary cash balance Ending cash balance Loan balance $ 3,600 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month
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