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  3. foyert corporation requires a minimum $6,500 cash

Foyert Corporation requires a minimum $6,500 cash balance. Loans taken to meet this requirement cost...

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Accounting

Foyert Corporation requires a minimum $6,500 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid at the end of each month). Any preliminary cash balance above $6,500 is used to repay loans at month-end. The cash balance on October 1 is $6,500, and the company has an outstanding loan of $2,500. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow.
\table[[,October,November,December],[Cash receipts,$22,500,$16,500,$20,500
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