Foyert corp requires a minimum 7500 cash balance if, Ask an Expert

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Foyert Corp. requires a minimum $7,500 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 $7,500 and the company has an outstanding loan of $3,500. 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	$	23,500	$	17,500	$	21,500
Cash disbursements		26,250		16,500		14,500

Prepare a cash budget for October, November, and December.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9960279

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