JULY
Beginning cash balance: $8,400
Add
- Cash Receipts $24,000
Total: $32,400
Deduct
- Payments: $28,000
Total: $4,400
To meet minimum requirement of $8,000 you borrow $3,600 at 1% Interest.
AUGUST
Beginning cash Balance: $8,000
Add
- Cash Receipts: $32,000
Total: $40,000
Deduct
- Payments: $30,000
- 1% Interest: $36
Total: $9,964
No borrowing is required because the minimum requirement of $8000 has been met.
SEPTEMBER
Beginning cash Balance: $9,964
Add
- Cash Receipts: $40,000
Total: $49,964
Deduct
- Payments: $32,000
Total: $17,964
No borrowing is required because the minimum requirement of $8000 has been met.
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Zahid H. Lilani
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