Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. necessary, the company borrows to meet this requirement at a cost of 3% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balante on July 1is $39,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loar activity) follow. Cash receipts Cash payments July $ 90,eee 118,000 August $ 116,000 104, 900 Septenber $ 155,000 132,400 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.)
Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. necessary, the company borrows to meet this requirement at a cost of 3% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balante on July 1is $39,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loar activity) follow. Cash receipts Cash payments July $ 90,eee 118,000 August $ 116,000 104, 900 Septenber $ 155,000 132,400 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.)
Chapter7: Budgeting
Section: Chapter Questions
Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...
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Question
![MOTORS CORPORATION
Cash Budget
July
August
September
Total cash available
Less: Cash payments for
Preliminary cash balance
Ending cash balance
Loan balance
Loan balance, Month-end](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd064ae55-c670-4650-8982-773b2cc1ef33%2F32224387-4203-4be6-b03a-f6e1bc84b4ac%2F3dtoqir_processed.jpeg&w=3840&q=75)
Transcribed Image Text:MOTORS CORPORATION
Cash Budget
July
August
September
Total cash available
Less: Cash payments for
Preliminary cash balance
Ending cash balance
Loan balance
Loan balance, Month-end
![Motors Corporation manufactures motors for dirt bikes. The company reguires a minimum $30,000 cash balance at each month-end. If
necessary, the company borrows to meet this requirement at a cost of 3% interest per month (paid at the end of each month). Any
preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $39,000, and the
company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan
activity) follow.
Cash receipts
Cash payments
July
S 9e, eee
118, e00
August
$ 116,000
104, 900
September
$ 155,000
132,400
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.)
MOTORS CORPORATION
Cash Budget
July
August
September
Total cash available
Less: Cash payments for](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd064ae55-c670-4650-8982-773b2cc1ef33%2F32224387-4203-4be6-b03a-f6e1bc84b4ac%2F93bugg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Motors Corporation manufactures motors for dirt bikes. The company reguires a minimum $30,000 cash balance at each month-end. If
necessary, the company borrows to meet this requirement at a cost of 3% interest per month (paid at the end of each month). Any
preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $39,000, and the
company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan
activity) follow.
Cash receipts
Cash payments
July
S 9e, eee
118, e00
August
$ 116,000
104, 900
September
$ 155,000
132,400
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.)
MOTORS CORPORATION
Cash Budget
July
August
September
Total cash available
Less: Cash payments for
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