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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}
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. Cash Receipts Cash payments Zlanuar'g.r $ 525,600 $ 469,500 February 411,600 354,500 March 453,333 533,333 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 monthend. The interest is computed based on the beginning balance ofthe loan forthe 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 signJ KAYAK COMPANY Cash Budget January February March Beginning cash balance $ 30,000 $ 30,000 Add: Cash receipts 526,000 411,000 456,000 Total cash available 556,000 441,000 Less: Cash payments for Interest on loan 600 All items excluding interest 469,500 354,500 533,000 Total cash payments 470, 100 354,500 533,000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance 30,000 $ 30,000 Loan balance Loan balance - Beginning of month $ 60,000 $ 0 Additional loan (loan repayment) Loan balance, end of month
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