Widmer Corp

question 76

Essay

Widmer Corp. requires a minimum $10,000 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly). If the ending cash balance exceeds the minimum, the excess will be applied to repaying any outstanding loan balance. The cash balance on July 1 is $10,400. Cash receipts other than for loans received for July, August, and September are forecasted as $24,000, $32,000, and $40,000, respectively. Payments other than for loan or interest payments for the same period are planned at $28,000, $30,000, and $32,000, respectively at July 1, there are no outstanding loans.
Required:
Prepare a cash budget for July, August, and September.

---

Definitions:

Medulla

A part of the brainstem that controls vital functions like heart rate and breathing.

Pons

A part of the brainstem that links the medulla oblongata and the thalamus, involved in regulating breathing, sleep, and taste among other functions.

Parietal Cortex

A region of the brain located in the parietal lobe, involved in processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.

Neurons

Specialized cells in the nervous system that transmit electrical and chemical signals.