part A

Part B

Exercise 20-17 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. January February March Cash Receipts $ 516,000 406,500 470,000 Cash payments $462,800 353,300 524,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 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 $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 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.) KAYAK COMPANY Cash Budget For January, February, and March January February $ 40,000 March Beginning cash balance CALCUS VI TUUUU UITLIC TUJLuuy UI CUCI PRIUILII. HIC CORPUrly HLUT VOICEVI UIU O January 1 Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repay be indicated with minus sign.) KAYAK COMPANY Cash Budget For January, February, and March January February $ 40,000 March Beginning cash balance ces Total cash available Preliminary cash balance Ending cash balance Loan balance $ 80,000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Exercise 20-18 Budgeted cash receipts LO P2 Jasper Company has sales on account and for cash. Specifically, 56% of its sales are on account and 44% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $530,000 for April, $540,000 for May, and $565,000 for June. The beginning balance of Accounts Receivable is $290,300 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June. Prepare a schedule of budgeted cash receipts for April, May, and June. April May June Cash sales Sales on account 44% 56% Total sales JASPER COMPANY Schedule of Cash Receipts For April, May, and June April Cash receipts from: Cash sales Collection of accounts receivable Total budgeted cash receipts May June