Exercise 7-17 (Algo) Preparation of cash budgets (for three periods) LO P2 4 Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts $ 526,000 403,000 454,000 Cash payments $ 467,300 344,300 526,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1% month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a lo $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.

Exercise 7-17 (Algo) Preparation of cash budgets (for three periods) LO P2 Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments cash payments for loan principal and interest payments) for the first three months of next year. Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1% month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a to $80,000 at January 1 . Prepare monthly cash budgets for January, February, and March. Note: Negotive balances and Loan repayment amounts (if any) should be indicated with minus sign. Exercise 7.17 (Algo) Preparation of cash budgets (for three periods) LO P2 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 yeat. 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 ! Prepare monthly cash budgets for January. February, and March Note: Negotive bolances and Loan repayment amounts (if any) should be indicoted with minus sign