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.
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 $525,000 400,000 450,000 Cash payments $475,000 350,000 525,000 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to $- meet this requirement charge 196 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. Minimum Cash Balance $30,000 Monthly January 1 Cash interest rate balance 196 $30,000 January 1 loan balance $60,000 Required: Prepare monthly cash budgets for January, February, and March. (Use cells A5 to 114 from the given information to complete this question. Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Negative amounts or amounts to be deducted should be input and displayed as negative values. All other answers should be input and displayed as positive values.) KAYAK COMPANY Cash Budget January February March Beginning cash balance Total cash available Less: Cash payments for All items excluding interest Interest on loan Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month E I H KAYAK COMPANY Cash Budget January February March Beginning cash balance Add: Cash payments for Add: Cash receipts Less: Cash payments for Less: Cash receipts Preliminary cash balance Loan activity 5 Ending cash balance Loan balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month KAYAK COMPANY Cash Budget January February March Beginning cash balance Total cash available Less: Cash payments for All items excluding interest Interest on loan Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) balance All items excluding interest Cash payments Cash receipts Interest on loan Interest revenue
