Help Save & Che Exercise 07-17 Preparation of cash budgets (for three periods) LO P2 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. points January February March Cash Receipts $519,000 403,500 463,000 Cash payments $ 460,300 344,800 536.000 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 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 $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.) Ch 07 Ex 7-17 0 HelpS 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.) points eBook KAYAK COMPANY Cash Budget For January, February, and March January February $ 30,000 $ 519,000 403,500 549,000 433,500 460,300 344,800 March 30,000 463 Cash receipts Total cash available Cash payments Interest expense 600 19 Preliminary cash balance Additional loan loan repayment) Ending cash balance 88,100 (58.100) 30,000 Loan balance 60,000 (58.100) Loan balance - Beginning of month Additional loan loan repayment) Loan balance - End of month 1.900 Prey 1 of 1 fi! Next > Houston Com. sk