Karim Corporation requires a minimum $9,600 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 $9,600 is used to repay loans at month-end. The cash balance on July 1 is $10,000, 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 $ 25,600 $ 33,600 $ 41,600

Cash payments30,400 31,600 33,600

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Beginning cash balance Total cash available Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month KARIM CORPORATION Cash Budget July August September S 10,000 Loan balance 0 0 0 Beginning cash balance Total cash available Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month KARIM CORPORATION Cash Budget July August September S 10,000 Loan balance 0 0 0

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