Karim Corp. requires a minimum $8,600 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,000 and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow:
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July
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August
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September
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Cash receipts
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$24,600
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$32,600
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$40,600
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Cash disbursements
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$28,900
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$30,600
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$32,600
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Prepare a cash budget for July, August, and September.