Exercise 22-17 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 Preparation of cash budgets (for three periods) P2 Cash Receipts Cash Payments January February $525,000 $475,000 400,000 350,000 March 450,000 525,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly inter- est rate of 1%, paid on the last day of each month. The interest is computed based on the beginning bal- ance of the loan for the month. The company repays loan principal with any cash in excess of $30,000 on the last day of each month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for January, February, and March Exercise 22-18 Jasper Company has sales on account and for cash. Specifically, 70 % of its sales are on account and 30 % are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $525,000 for April, $535,000 for May, and $560,000 for June. The beginning balance of accounts re- ceivable is $400,000 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June. Budgeted cash receipts P2 Exercise 22-19 Zisk Co. purchases raw materials on account. Budgeted purchase amounts are April, $80,000; May, $110,000; and Junec, $120,000. Payments are made as follows: 70% in the month of purchase and 30% in the month after purchase. The March 31 balance of accounts payable is $22,000. Prepare a schedule of budgeted cash payments for April, May, and June. Budgeted cash payments P2 Karim Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1 % in terest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,400, and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. Prepare a cash budget for July, August, and September. (Round interest payments to the nearest whole dollar.) Exercise 22-20 Cash budget P2 July September August Cash receipts Cash payments. $20,000 $26,000 $40,000 28,000 30,000 22,000