Answer:
Mike's Motors Corp.
Cash Budget 
                                              July             August        September
Beginning balance          $41,000          $30,000          $30,000
Cash receipts                   92,000            118,000           157,000
Total cash available      $133,000         $148,000        $187,000
Cash payments              120,000           106,900           134,400
Interest/Loan repayment                         11,100              6,602
Cash balance                    13,000            30,000            45,998
Cash to borrow                 17,000                      0               0
Minimum cash balance $30,000          $30,000          $30,000
Explanation:
a) Data and Calculations:
Minimum cash balance = $30,000
Interest rate on borrowings = 3% per month
Beginning cash balance = $41,000
Cash Budget 
                                            July             August        September
Beginning balance        $41,000          $30,000          $30,000
Cash receipts                 92,000            118,000           157,000
Total cash available    $133,000         $148,000        $187,000
Cash payments            120,000           106,900           134,400
Interest/Loan repayment                         11,100              6,602
Cash balance                  13,000            30,000            45,998
Cash to borrow               17,000                      0               0
Minimum cash balance 30,000            30,000            30,000
Loan repayment:
In August:
Interest is paid =   $510 ($17,000 * 3%)
Loan is repaid = 10,590
Total paid =        $11,100
Balance of loan unpaid = $6,410 ($17,000 - 10,590)
In September:
Interest on loan = $192 ($6,410 * 3%)
Loan repaid =     6,602 ($6,410 + 192)