Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments...

Transcribed Image Text:

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 $525,000 406,500 482,000 $ 471,800 353,300 526,000 Kayak requires a minimum cash balance of $30,000 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 $30,000 is used to repay loans at month-end. 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.) Answer is not complete. KAYAK COMPANY Cash Budget January February March Beginning cash balance $ 30,000 $ 30,000 Add: Cash receipts 0 525,000 406,500 482,000 Total cash available 555,000 436,500 Less: Cash payments for 0 Interest on loan All items excluding interest 471 800 353.300 526.000

Answer rating: 100% (QA)

The Answer is in the image, click to view ... View the full answer