Question

7 3 points Foyert Corp. requires a minimum $7.900 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 October 1 is $7.900 and the company has an outstanding loan of $3.900. 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 $23,900 $17,900 $21,900 Cash payments 26,850 16,900 14,100 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) H lo 19 19 Print FOYERT CORP Cash Budget For October, November, and December October November December Beginning cash balance 7.900 5 972 1,972 Cash recipes 23,000 12,000 21,800 Tot cash available 31.000 13.872 23,872 References Preliminary cash balance Ending cash balance Loan balance 5 2.000 Lan balance Beginning of month Additional loan loan repayment) Loan balance. End of month 78

Answer 1

FOYERT CORP. Cash Budget For October, November, and December
	October	November	December
Beginning Cash Balance	$ 7,900	$ 7,900	$ 7,900
Cash receipts	$ 23,900	$ 17,900	$ 21,900
Total Cash Available	$ 31,800	$ 25,800	$ 29,800
Cash payments	($ 26,850)	($ 16,900)	($ 14,100)
Interest on bank loan	($ 78) ($ 3,900 x 2% )	($ 139) ( $ 6,928 x 2% )	$ 121 ( $ 6,067 x 2% )
Priliminary cash balamce	$ 4,872	$ 8,761	$ 15,579
Additional loan (Loan Repayments) - Bal Fig.	$ 3,028 ( $ 7,900 (-) $ 4,872 )	($ 861)	($ 6,067)
Ending Cash Balance	$ 7,900	$ 7,900	$ 9,512
Loan Balance
Loan Balance -Beginning of Month	$ 3,900	$ 6,928	$ 6,067
Additional Loan (Loan Repayment)	$ 3,028	($ 861)	($ 6,067)
Loan Balance End of Month	$ 6,928	$ 6,067	$ 0