20-2

The question is complete but says that something is not correct, could use some help.

Karim Corp. requires a minimum $8,900 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,300 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) follow.

July Cash receipts Cash payments August September $24,900 $32,900 $40,900 32,900 29,350 30,900 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.) Answer is complete but not entirely correct. KARIM CORP Cash Budget For July, August, and September August $ 9,300 8,900 8,900 01 24,900 32,900 Ol 40,900 July September Beginning cash balance Cash receipts Total cash available Cash payments Interest on bank loarn Preliminary cash balance Additional loan (loan repayment) Ending cash balance 41,800 49,800 29,3030,90032,900 43 $4,850S 10,819$ 16,857 (1919) (2, 131) 8,900 14,726 34,200 0 81 8,900S Loan balance Loan balance Beginning of month S Additional loan (loan repayment) Loan balance End of month 0 S 4,050 2,131 01,919) $ 4,050 2,131 $ (2,131)