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 $ 462,900 349,900 527,000 $ 515,000 402,000 478,000 Kayak requires a minimum cash balance of $50,000 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 $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance of $100,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget January February March Beginning cash balance 50,000 402,000 452,000 24 50,000 $ Add: Cash receipts 515,000 478,000 Total cash available 565,000 Less: Cash payments for Interest on loan Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance Loan balance - Beginning of month Additional loan (loan repayment) 24 100,000 Loan balance, end of month %24 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 $ 462,900 349,900 527,000 $ 515,000 402,000 478,000 Kayak requires a minimum cash balance of $50,000 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 $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance of $100,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget January February March Beginning cash balance 50,000 402,000 452,000 24 50,000 $ Add: Cash receipts 515,000 478,000 Total cash available 565,000 Less: Cash payments for Interest on loan Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance Loan balance - Beginning of month Additional loan (loan repayment) 24 100,000 Loan balance, end of month %24
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Answer rating: 100% (QA)
Solution Working A DE G H K L M P Q R S 2 Cash Cash Payment Receipts s 515000 46290... 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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