and cash payments (excluding cash payments for loan principal and interest payments) for the firstthree months of next year.JanuaryFebruaryMarchCash ReceiptsCash payments$ 517,000409,500480,000$ 459,400351,900524,000Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet thisrequirement charge 1%, interest per month, paid at each month-end. The interest is computed basedon the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 isused to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of$80,000 at January 1.Prepare monthly cash budgets for January, February, and March. (Negative balances and Loanrepayment amounts (if any) should be indicated with minus sign.)Answer is complete but not entirely correct.KAYAK COMPANYBeginning cash balanceAdd: Cash receiptsCash BudgetJanuaryFebruaryMarchSA40,000$ 40,000 $74,168517,000409,500480,000557,000449,500554,168Total cash availableLess: Cash payments forAll items excluding interest459,400351,900524,000Interest on loan800232 →0Total cash payments460,200352,132524,000Preliminary cash balance96,80097,36830,168Loan activityAdditional loan (loan repayment)Ending cash balanceLoan balance - Beginning of monthAdditional loan (loan repayment)Loan balance, end of month23,2000×9,832$40,000 $74,168$40,000Loan balance$80,000 $ 23,200$023,20009,832$23,200$0$9,832

Cash Budget -The term "cash budget" describes the projections of the corporate entity's management…

Answered: and cash payments (excluding cash…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The interest rate on a $15,300 loan is 9.7% compounded semiannually. Semiannual payments will pay off the loan in nine years. (Do not round intermediate calculations. Round the PMT and final answers to 2 decimal places.) a. Calculate the interest component of Payment 12. $ b. Calculate the principal component of Payment 5. Principal c. Calculate the interest paid in Year 8. Interest paid d. How much do Payments 5 to 8 inclusive reduce the principal balance? Principal reduction Interest
A company borrows $174,900 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the principal. If the company decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in dollars at the 9th payment to pay off the loan? $
Given below is the principal owed on a student loan last month, the annual interest rate, and the way the minimum monthly payment is computed. Find this month's minimum payment due. Principal Annual Rate Method for Calculating Minimum Monthly Payment $23,800 3% finance charge+$20+1.5% of principal
A loan of $7000.00 is repaid by payments of $450 at the end of every three months. Interest is 6% compounded quarterly. a) The number of payments is ________. b) The size of the final payment is $__________. (round answer to nearest cent)
Consider a student loan of $10,000 at a fixed APR of 6% for 4 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. a. The monthly payment is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
Complete the first three lines of an amortization schedule for the following loan. Assume monthly payments. amount, $6000; rate, 9%; time, eighteen months Fill out the amortization schedule below, assume monthly payments and round all values to the nearest cent. Payment Amount of Interest Applied to Number Payment Payment Principal 2 3 $ $ $ Balance $6000 $ $
A company borrows $159,300 from a bank. The interest rate on the loan is 6 percent compounded semiannualy. The company agrees to repay the loan in equal semiannualy installments over the next five years. The first payment is to be made six months from now. (Use factor table in Appendix B for calculation) Required 1: What is the amount of each semiannual payment? $ Required 2: In the first payment, what is the amount of interest cancelled? $ Required 3: In the fifth payment, what is the amount of loan paid net of interest? $ Required 4: In the last payment, what is the amount of interest cancelled? $ Required 5: Assume the debt contract has the option to make one extraordinary payment of up to 20% of the principal. If the company decides to exercise the right and make the extra payment together with the 8th payment, how much it must pay in dollars at the 9th payment to pay off the loan? $
3. A person borrows $5,000 at an interest rate of 18%, compounded monthly. Monthly payments of $180.76 are agreed upon. а) What is the length of the loan? b) month to pay off the entire loan balance? What is the total amount that would be required at the end of the sixth
P2-2A Emily Valley is a licensed dentist. During the fi rst month of the operation of her business, the following events and transactions occurred.April 1 Invested $20,000 cash in her business. 1 Hired a secretary-receptionist at a salary of $700 per week payable monthly. 2 Paid offi ce rent for the month $1,100. 3 Purchased dental supplies on account from Dazzle Company $4,000. 10 Performed dental services and billed insurance companies $5,100. 11 Received $1,000 cash advance from Leah Mataruka for an implant. 20 Received $2,100 cash for services performed from Michael Santos. 30 Paid secretary-receptionist for the month $2,800. 30 Paid $2,400 to Dazzle for accounts payable due.Emily uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 301 Owner’s Capital, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.Instructions(a) Journalize the…
Prepare an amortization schedule for a five year loan of $58,500. The interest rate is 6% per year and the loan cost for equal annual payments. How much interest is paid in the third year? how much total interest is paid over the life of the loan? Loan amount $ Interest rate Loan term Output area: 58,500 6% 5 Loan payment $13,887.69 Year Beginning balance 1 $ 58,500.00 Total payment Interest paid Principal paid Ending balance $ 13,887.69 $ 3,510.00 $ 10,377.69 $ 48,122.31 2 3 4 5 Total interest paid over life of loan

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