Drop down options include: * Cash receipts * Cash disbursements * Interest on bank loan * Additional loan (loan repayment) * Interest revenue

Karim Corp. requires a minimum $8,000 cash balance. If necessary, loans are taken to meet this requirement at a cost of 16 interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,400 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 August $26,000 30,000 July $20,000 28,000 September $40,000 22,000 Cash receipts Cash disbursements Prepare a cash budget for July, August, and September. KARIM CORP. Cash Budget For July, August, and September July August September Beginning cash balance S 8,400 Total cash available Preliminary cash balance Ending cash balance Loan balance Loan balance Beginning of month S Additional loan (loan repayment) Loan balance End of month