Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. karim corp. requires a minimum $9,300 cash balance

Karim Corp. requires a minimum $9,300 cash balance. Loans taken to meet this requirement cost...

60.1K

Verified Solution

Question

Accounting

Karim Corp. requires a minimum $9,300 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,700, 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 $ 25,300 $ 33,300 $ 41,300
Cash payments 29,950 31,300 33,300

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.)

image

KARIM CORP. Cash Budget For July, August, and September July August $ 9,700 September Beginning cash balance Total cash available Preliminary cash balance Ending cash balance Loan balance $ 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Nike has a project that will produce cash flows $200 next year if the economy is...

Biology
1.2K views

why does phenotypic plasticity in roots and shoots expected to be more important in environments where...

Biology
1.2K views

Choose the pair of words that are similar in relationship to that of the given...

Physics
1.2K views

A simple pendulum of length L has mass M and it oscillates freely with amplitu...

Basic Math
1.2K views

Suppose the marginal revenue is MR x 16x Find the interval where the revenue is...

Basic Math
1.2K views

A tunnel is constructed with a semielliptical arch The width of the tunnel is 70...

Statistics
1.2K views

Four students are trying to move a table from one corner of the classroom to...

Algebra
1.2K views

1 point Write k k 1 0 0 1 k 1 2 k 1 as...

Algebra
1.2K views

Question 1 6 Which of the following expressions is a factor of 2y 11y 5...

Accounting
1.2K views

Nick Co. receives inventory costing $1,000 from a supplier in September of 2017 and pays...

Finance
1.2K views

11 14 15 16 17 19 10 13 WEEN STRICT WRICTEN WE PORNO Only if...

Finance
1.2K views

QC Enterprises produces plastic tubing/piping for the residential construction industry. The firm is all equity...