Answer:
Karim Corp
<u>Cash Budget</u>
July August September
Cash inflows: $20,000 $26,000 $40,000
Cash outflows: (<u>$28,000) </u> (<u>$30,000)</u> (<u>$22,000)</u>
Monthly cash flow: ($8,000) ($4,000) $18,000
Monthly interests: $0 ($76) ($116.76)
Initial cash balance: <u>$8,400 </u> <u> $8,000 </u> <u> $8,000</u>
Ending cash balance: $400 $3,924 $25,883.24
Required bank loan: $7,600 $4,076 $0
Payment of bank loan: <u> $0 </u> <u> $0 </u> <u> ($11,676)</u>
Total $8,000 $8,000 $14,207.24
Explanation:
A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.