Exercise $20-20($Algo$)$ Cash budget LO P$2$

Karim Corporation requires a minimum $$8,400$ cash balance. Loans taken to meet this requirement cost $1\%$ interest per month $($paid at the end of each month$).$ Any preliminary cash balance above $$8,400$ is used to repay loans at month$-$end. The cash balance on July $1$ is $$8,800,$ 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.

$$JulyAugustSeptemberCash receipts$ $24,400$$ $32,400$$ $40,400$Cash payments$28,60030,40032,400$

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. Answer is complete but not entirely correct.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{8\}\{|$c$|\}\{$KARIM CORPORATION$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{8\}\{|$c$|\}\{$Cash Budget$\}\backslash \backslash$

$\backslash$hline & & $\backslash$multicolumn$\{2\}\{|$r$|\}\{$July$\}$ & $\backslash$multicolumn$\{2\}\{|$r$|\}\{$August$\}$ & $\backslash$multicolumn$\{2\}\{|$l$|\}\{$September$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Beginning cash balance$\}$ & $\backslash$$ & $8,800$ & $\backslash$$ & $8,400*$ & $\backslash$$ & $8,400\backslash \backslash$

$\backslash$hline Add: Cash receipts & $\backslash (\backslash$checkmark $\backslash )$ & & $24,400$ & & $32,400$ & & $40,400\backslash \backslash$

$\backslash$hline Total cash available & & & $33,200$ & & $40,800$ & & $48,800\backslash \backslash$

$\backslash$hline Less: Cash payments for & $\backslash (\backslash$checkmark $\backslash )$ & & & & & & $\backslash \backslash$

$\backslash$hline Interest on loan & $-$ & & $\backslash (0\backslash$geqslant $\backslash )$ & & $38$ & & $\backslash (84\backslash$times $\backslash )\backslash \backslash$

$\backslash$hline Cash payments & $\backslash (\backslash$times $\backslash )$ & & $28,600$ & & $30,400$ & & $32,400\backslash \backslash$

$\backslash$hline Total cash payments & & & $28,600$ & & $30,438$ & & $32,484\backslash \backslash$

$\backslash$hline Preliminary cash balance & & $\backslash$$ & $4,600$ & $\backslash$$ & $10,362$ & $\backslash$$ & $16,316\backslash (\backslash$boldsymbol$\{$x$\}\backslash )\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{8\}\{|$l$|\}\{$Loan activity$\}\backslash \backslash$

$\backslash$hline Additional loan $($loan repayment$)$ & $\backslash (\backslash$checkmark $\backslash )$ & & $3,800$ & & $2,000*$ & & $\backslash (8,000\backslash$times $\backslash )\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Ending cash balance$\}$ & $\backslash$$ & $\backslash (800\backslash$times $\backslash )$ & $\backslash$$ & $8,400$ & $\backslash$$ & $\backslash (8,400\backslash$times $\backslash )\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{8\}\{|$c$|\}\{$Loan balance$\}\backslash \backslash$

$\backslash$hline Loan balance $-$ Beginning of month & & $\backslash$$ & $0$ & $\backslash$$ & $3,800$ & $\backslash$$ & $1,800\backslash \backslash$

$\backslash$hline Additional loan $($loan repayment$)$ & & & $3,800$ & & $2,000$ & & $8,000\backslash \backslash$

$\backslash$hline Loan balance $-$ End of month & & $\backslash$$ & $3,800$ & $\backslash$$ & $1,800*$ & $\backslash$$ & $\backslash (0\backslash \%\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$