Exercise 20-21 (Algo) Cash budget LO P2 Foyert Corporation requires a minimum $7,100 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid the end of each month). Any preliminary cash balance above $7,100 is used to repay loans at month-end. The cash balance on Octo 1 is $7,100, and the company has an outstanding loan of $3,100. Budgeted cash receipts (other than for loans received) and budgete cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments October $ 23,100 25, 650 November $ 17,100 16,100 December $ 21,100 14,900 Prepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should b indicated with minus sign. Round your final answers to the nearest whole dollar.)
Exercise 20-21 (Algo) Cash budget LO P2 Foyert Corporation requires a minimum $7,100 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid the end of each month). Any preliminary cash balance above $7,100 is used to repay loans at month-end. The cash balance on Octo 1 is $7,100, and the company has an outstanding loan of $3,100. Budgeted cash receipts (other than for loans received) and budgete cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments October $ 23,100 25, 650 November $ 17,100 16,100 December $ 21,100 14,900 Prepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should b indicated with minus sign. Round your final answers to the nearest whole dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 20-21 (Algo) Cash budget LO P2
Foyert Corporation requires a minimum $7,100 cash balance. Loans taken to meet this requirement cost 2% Interest per month (paid at
the end of each month). Any preliminary cash balance above $7,100 is used to repay loans at month-end. The cash balance on October
1 is $7,100, and the company has an outstanding loan of $3,100. Budgeted cash receipts (other than for loans received) and budgeted
cash payments (other than for loan or interest payments) follow.
Cash receipts
Cash payments
October
$ 23,100
25,650
November
$ 17,100
16, 100
December
$ 21,100
14,900
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.)
Beginning cash balance
Total cash available
Total cash payments
Preliminary cash balance
Loan activity
Ending cash balance
Loan balance-Beginning of month
Additional loan (loan repayment)
Loan balance-End of month
FOYERT CORPORATION
Cash Budget
October
November
December
$
7.100
Loan balance
$
3,100
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