Answer:
(1) Total cash receipts:
July = $63,800
August = $64,800
September = $68,800
2-a. Ending Cash Balance:
July = $15,00
August = $21,173
September = $35,873
2-b. Loan Balance End of Month:
July = $2,898
August = $0
September = $0
Explanation:
(1) Prepare a cash receipts budget for July, August, and September.
Note: See part (1) of the attached excel file for the cash receipts budget for July, August, and September.
From the attached excel file, we have:
Total cash receipts:
July = $63,800
August = $64,800
September = $68,800
(2) Prepare a cash budget for each of the months of July, August, and September.
Note: See part (2) of the attached excel file for the cash budget for July, August, and September.
In the attached excel file, the following calculation is made:
July loan repayment = July preliminary cash balance - Minimum cash balance required = $17,902 - $15,000 = $2,902
From the attached excel file, we have:
2-a. Ending Cash Balance:
July = $15,00
August = $21,173
September = $35,873
2-b. Loan Balance End of Month:
July = $2,898
August = $0
September = $0
