Problem

Fabrice Corp. requires a minimum $6,000 cash balance. If necessary, loans are taken to mee...

Fabrice Corp. requires a minimum $6,000 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 October 1 is $6,000 and the company has an outstanding loan of $2,000. 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. Round interest payments to the nearest whole dollar.

 

October

November

December

Cash receipts 

$22,000

$16,000

$20,000

Cash disbursements 

.24,000

15,000

16,000

Step-by-Step Solution

Request Professional Solution

Request Solution!

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.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search