DO not give answer in image Foyert Corporation requires a minimum $6,800 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid atthe end of each month). Any preliminary cash balance above $6,800 is used to repay loans at month-end. The cash balance onOctober 1 is $6,800, and the company has an outstanding loan of $2,800. Budgeted cash receipts (other than for loans received) andbudgeted cash payments (other than for loan or interest payments) follow.Cash receiptsCash paymentsBeginning cash balanceOctober$ 22,80025,200Total cash availablePrepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should beindicated with minus sign. Round your final answers to the nearest whole dollar.)November$ 16,80015,800Total cash paymentsPreliminary cash balanceLoan activityEnding cash balanceLoan balance - Beginning of monthAdditional loan (loan repayment)Loan balance - End of monthDecember$ 20,80015,200FOYERT CORPORATIONCash Budget$OctoberLoan balance.$6,80002,800November0December0

The cash budget is very important for the entity because it helps to know the estimated cash…

Foyert Corporation requires a minimum $6,800 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 $6,800 is used to repay loans at month-end. The cash balance on October 1 is $6,800, and the company has an outstanding loan of $2,800. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments Beginning cash balance Total cash available October $ 22,800 25,200 Prepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash payments Preliminary cash balance Loan activity Ending cash balance November $ 16,800 15,800 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance-End of month December $ 20,800 15,200 FOYERT CORPORATION Cash Budget October $ Loan balance $ 6,800 0 2,800 November 0 December 0

Foyert Corporation requires a minimum $6,800 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 $6,800 is used to repay loans at month-end. The cash balance on October 1 is $6,800, and the company has an outstanding loan of $2,800. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments Beginning cash balance Total cash available October $ 22,800 25,200 Prepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash payments Preliminary cash balance Loan activity Ending cash balance November $ 16,800 15,800 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance-End of month December $ 20,800 15,200 FOYERT CORPORATION Cash Budget October $ Loan balance $ 6,800 0 2,800 November 0 December 0

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 22M

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