Saved 7-17 Check my Exercise 7-17 (Algo) Preparation of cash budgets (for three periods) LO P2 350,200 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 $ 528,000 $ 473,700 February 404,500 March 475,000 523,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest p month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminar cash balance above $40,000 is used to repay loans at month-end. 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.) tes KAYAK COMPANY Cash Budget January $ 40.000 February March Beginning cash balance Total cash available 1 Answer is not complete. March S KAYAK COMPANY Cash Budget January $ 40.000 528,000 568,000 $ February $ 40,000 404,500 444,500 350,200 $ 475,000 825,200 (350,200) Beginning cash balance Add: Cash receipts 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) Ending cash balance (473,700) (800) (474,500) 93,500 (350,200) (265) 19,800 19,800 20,200 94,300 X $ (26,500) $ 40,000 20,200 (53,500) $ 40,000 Loan balance $ 80,000 (53,500) $ 26,500 $ 26,500 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month $ 67,800 40,000 $ 107,800 X $ 67,800