Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help Interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess

image text in transcribed
image text in transcribed
Help 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 $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. 1 Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be Indicated with minus sign.) 8 144.24 KAYAK COMPANY Cash Budget For January, February, and March January February 30,000 March Beginning cash balance Total cash avalable Preliminary cash balance Ending cash balance Loan balance $ 50.000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 1 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 January 5527,000 $469.400 February 405,000 March 469,000 Receipta Cash paymenta 8 un 347,400 $32,000 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 interest rate of TK, 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 $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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget For January, February, and March January February $ 30.000 March Beginning cash balance Total cash available Preliminary cash balance M Prev 1 of 9 Next >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Non Specialities

Authors: Peter Atrill, Eddie McLaney

2nd Edition

0139833625, 9780139833625

More Books

Students also viewed these Accounting questions