Kaizen Corp. requires a minimum $8,000 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,400 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) are:
| July | August | September |
Cash receipts | $24,000 | $32,000 | $40,000 |
Cash disbursements | 28,000 | 30,000 | 32,000 |
Prepare a cash budge t for July, August, and September. Round interest payments to the nearest whole dollar.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.