Karim Corporation requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $8,000 is used to repay loans at month-end. The cash balance on July 1 is $8,400, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments Beginning cash balance July $ 20,000 28,000 Total cash available Less: Cash payments for Interest on loan Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) All items excluding interest Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance August $ 26,000 30,000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month September $ 40,000 22,000 KARIM CORPORATION Cash Budget $ July Loan balance $ 8,400 $ 20,000 28,400 0 0 0 August 8,000 $ 26,000 34,000 76 September 76 8,000 40,000 48,000 117 117

Karim Corporation requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $8,000 is used to repay loans at month-end. The cash balance on July 1 is $8,400, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments Beginning cash balance July $ 20,000 28,000 Total cash available Less: Cash payments for Interest on loan Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) All items excluding interest Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance August $ 26,000 30,000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month September $ 40,000 22,000 KARIM CORPORATION Cash Budget $ July Loan balance $ 8,400 $ 20,000 28,400 0 0 0 August 8,000 $ 26,000 34,000 76 September 76 8,000 40,000 48,000 117 117

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Karim Corporation requires a minimum $9,800 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $9,800 is used to repay loans at month-end. The cash balance on July 1 is $10,200, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments July $ 25,800 30,700 August $ 33,800 31,800 September $ 41,800 33,800 Prepare a cash budget for July, August, and September. Note: 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 KARIM CORPORATION Cash Budget July August September $ 10,200 Prov
Karim Corporation requires a minimum $8,200 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $8,200 is used to repay loans at month-end. The cash balance on July 1 is $8,600, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. July August September Cash receipts $ 24,200 $ 32,200 $ 40,200 Cash payments 28,300 30,200 32,200 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)
Karim Corporation requires a minimum $8,100 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 $8,100 is used to repay loans at month-end. The cash balance on July 1 is $8,500, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments Beginning cash balance Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash available July August $ 24,100 $ 32,100 28,150 30,100 Total cash payments Preliminary cash balance Loan activity Ending cash balance September $ 40,100 32,100 KARIM CORPORATION Cash Budget $ July Loan balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance…
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Karim Corporation requires a minimum $8,900 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 $8,900 is used to repay loans at month-end. The cash balance on July 1 Is $9,300, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or Interest payments) follow. Cash receipts Cash payments Beginning cash balance Total cash available Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (If any) should be Indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash payments Preliminary cash balance Loan activity July $ 24,900 29,350 Ending cash balance August $ 32,900 30,900 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month September $ 40,900 32,900 KARIM CORPORATION Cash Budget $…
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Foyert Corporation requires a minimum $7,400 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $7,400 is used to repay loans at month-end. The cash balance on October 1 is $7,400, and the company has an outstanding loan of $3,400. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. October November December Cash receipts $ 23,400 $ 17,400 $ 21,400 Cash payments 26,100 16,400 14,600 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.)
Foyert Corporation requires a minimum $6,300 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 $6,300 is used to repay loans at month-end. The cash balance on October 1 is $6,300, and the company has an outstanding loan of $2,300. 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 $ 22,300 24,450 November $ 16,300 15,300 December $ 20,300 15,700 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.) FOYERT CORPORATION es Beginning cash balance Add: Cash receipts Total cash available Add: Cash payments for Interest on loan Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash…
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