Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
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 January $ 521, eee $ 468,900 February 401, eee 348, 9ee March 454, eee 532, eee Kayak requires a minimum cash balance of $30,000 at each month-end Loans taken to meet this requirement charge 1%, Interest p month, pald at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminar 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 balanc of $60,000 at January 1 Prepare monthly cash budgets for January, February, and March, (Negative balonces and Loan repayment amounts (if any) should be Indicated with minus slgn.) KAYAK COMPANY Cash Budget January $ 30.000 February Beginning cash balance March Total cash available Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance $ 60,000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started