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Question - Karim Corporation requires a minimum $9,500 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid at the end of each month). Any preliminary cash balance above $9,500 is used to repay loans at month-end. The cash balance on July 1 is $9,900, 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
$25,500
$33,500
$41,500
Cash payments
30,250
31,500
33,500
Required - Prepare a cash budget for July, August, and September.
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