3 LA 4 5 6 January 7 February March A 1 2 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. 8 9 B C Cash Receipts $525,000 400,000 450,000 Cash payments $475,000 350,000 525,000 E 10 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to 11 meet this requirement charge 1% interest per month, paid at each month-end. The 12 interest is computed based on the beginning balance of the loan for the month. Any 13 preliminary cash balance above $30,000 is used to repay loans at month-end. The 14 company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. 15 16 Required: 17 Prepare monthly cash budgets for January, February, and March. 18 F Minimum Cash Monthly Balance interest rate 1% $30,000 January 1 Cash balance $30,000 19 (Use cells A5 to 114 from the given information to complete this question. Negative balances and Loan repayment amounts (if any) 20 should be indicated with minus sign. Negative amounts or amounts to be deducted should be input and displayed as negative values. All 21 other answers should be input and displayed as positive values.) January 1 loan balance $60,000
3 LA 4 5 6 January 7 February March A 1 2 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. 8 9 B C Cash Receipts $525,000 400,000 450,000 Cash payments $475,000 350,000 525,000 E 10 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to 11 meet this requirement charge 1% interest per month, paid at each month-end. The 12 interest is computed based on the beginning balance of the loan for the month. Any 13 preliminary cash balance above $30,000 is used to repay loans at month-end. The 14 company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. 15 16 Required: 17 Prepare monthly cash budgets for January, February, and March. 18 F Minimum Cash Monthly Balance interest rate 1% $30,000 January 1 Cash balance $30,000 19 (Use cells A5 to 114 from the given information to complete this question. Negative balances and Loan repayment amounts (if any) 20 should be indicated with minus sign. Negative amounts or amounts to be deducted should be input and displayed as negative values. All 21 other answers should be input and displayed as positive values.) January 1 loan balance $60,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:3
LA
4
5
6 January
7 February
March
A
1
2 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.
8
9
B
C
Cash Receipts
$525,000
400,000
450,000
Cash payments
$475,000
350,000
525,000
E
10 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to
11 meet this requirement charge 1% interest per month, paid at each month-end. The
12 interest is computed based on the beginning balance of the loan for the month. Any
13 preliminary cash balance above $30,000 is used to repay loans at month-end. The
14 company has a cash balance of $30,000 and a loan balance of $60,000 at January 1.
15
16 Required:
17 Prepare monthly cash budgets for January, February, and March.
18
F
Minimum Cash Monthly
Balance
interest rate
1%
$30,000
January 1 Cash
balance
$30,000
19 (Use cells A5 to 114 from the given information to complete this question. Negative balances and Loan repayment amounts (if any)
20 should be indicated with minus sign. Negative amounts or amounts to be deducted should be input and displayed as negative values. All
21 other answers should be input and displayed as positive values.)
January 1
loan balance
$60,000
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