Ch 07 Ex 7-17 Saved Help Save According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $140,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. 15 points Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) eBook March Hint 469,000 Ask 530,000 KAYAK COMPANY Cash Budget For January, February, and March January February Beginning cash balance $ 40,000 $ 40,000 Cash receipts 526,000 402,000 Total cash available 566,000 442,000 Cash payments 467,300 343,300 Interest expense 800 Preliminary cash balance Additional loan (loan repayment) Ending cash balance $ 40,000 Loan balance Loan balance - Beginning of month $ 80,000 Additional loan (loan repayment) Loan balance - End of month Print References Ch 07 Ex 7-17 Saved Help Save Exercise 07-17 Preparation of cash budgets (for three periods) LO P2 15 points Kayak Co. 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. Cash Receipts $526,000 402,000 469,000 January February March Cash payments $ 467,300 343, 300 530,000 eBook Hint According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $140,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Ask Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Print References March KAYAK COMPANY Cash Budget For January, February, and March January February $ 40,000 $ 40,000 526,000 402,000 566,000 442,000 467,300 343,300 800 Beginning cash balance Cash receipts Total cash available Cash payments Interest expense Preliminary cash balance 469,000 530,000 additionalls dont