Foyert Corp. requires a minimum $6,900 cash balance. If necessary, loans are tak
ID: 2488183 • Letter: F
Question
Foyert Corp. requires a minimum $6,900 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $6,900 and the company has an outstanding loan of $2,900. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.
Prepare a cash budget for October, November, and December.
Foyert Corp. requires a minimum $6,900 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $6,900 and the company has an outstanding loan of $2,900. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.
Foyert Corp. requires a minimum $6,900 cash balance. If necessary, loans are taken to meet this requirement at a cost ot 2% Interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $6,900 and the company has an outstanding loan of $2,900. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. Cash receipts Cash disbursements October November December $22,900 $16,900 $ 20,900 15,900 25,350 15,100 Prepare a cash budget for October, November, and December. (Enter your "Interest on bank loan" answer to whole dollar amount.) FOYERT CORF. Cash Budget For October, November, and December October November December Beginning cash balance 6,900 lotal cash available Preliminary cash balance Ending cash balance Loan balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance End of monthExplanation / Answer
Cash budget
October November December Beginning cash balance 6900 6900 6900 Cash receipt 22900 16900 20900 Total cash available 29800 23800 27800 Cash disbursement 25350 15900 15100 Interest on bank loan 58 108 90 Preliminary cash balance 4392 7792 12610 Additional loan (loan repayment) 2508 (892) (4516) Ending cash balance 6900 6900 8094 Loan balance: Beginning of month 2900 5408 4516 Additional loan(loan repayment) 2508 (892) (4516) End of month 5408 4516 0Related Questions
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