Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments...
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Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts Cash payments $ 523,000 404,000 468,000 $ 465,400 346,400 523,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Beginning cash balance Add: Cash receipts Total cash available Add: Cash payments for Interest revenue Total cash payments Preliminary cash balance Loan activity Ending cash balance KAYAK COMPANY Cash Budget January February March $ 40,000 $ 97,600 523,000 404,000 563,000 501,600 0 0 0 Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts Cash payments $ 523,000 404,000 468,000 $ 465,400 346,400 523,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Beginning cash balance Add: Cash receipts Total cash available Add: Cash payments for Interest revenue Total cash payments Preliminary cash balance Loan activity Ending cash balance KAYAK COMPANY Cash Budget January February March $ 40,000 $ 97,600 523,000 404,000 563,000 501,600 0 0 0
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To prepare the monthly cash budgets for January February and March for Kayak Company we can follow t... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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