and cash payments (excluding cash payments for loan pr three months of next year. Cash Receipts January February March $ 517,000 Cash payments $ 459,400 351,900 524,000 . 409,500 480,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet t requirement charge 1%, interest per month, paid at each month-end. The interest is computed on the beginning balance of the loan for the month. Any preliminary cash balance above $40,0 used to repay loans at month-end. The company has a cash balance of $40,000 and a loan b $80,000 at January 1. decte for January February, and March. (Negative balances and Loa
and cash payments (excluding cash payments for loan pr three months of next year. Cash Receipts January February March $ 517,000 Cash payments $ 459,400 351,900 524,000 . 409,500 480,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet t requirement charge 1%, interest per month, paid at each month-end. The interest is computed on the beginning balance of the loan for the month. Any preliminary cash balance above $40,0 used to repay loans at month-end. The company has a cash balance of $40,000 and a loan b $80,000 at January 1. decte for January February, and March. (Negative balances and Loa
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
Related questions
Question
![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
Cash payments
$ 517,000
409,500
480,000
$ 459,400
351,900
524,000
Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this
requirement charge 1%, interest per month, paid at each month-end. The interest is computed based
on the beginning balance of the loan for the month. Any preliminary 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.)
Answer is complete but not entirely correct.
KAYAK COMPANY
Beginning cash balance
Add: Cash receipts
Cash Budget
January
February
March
SA
40,000
$ 40,000 $
74,168
517,000
409,500
480,000
557,000
449,500
554,168
Total cash available
Less: Cash payments for
All items excluding interest
459,400
351,900
524,000
Interest on loan
800
232 →
0
Total cash payments
460,200
352,132
524,000
Preliminary cash balance
96,800
97,368
30,168
Loan activity
Additional loan (loan repayment)
Ending cash balance
Loan balance - Beginning of month
Additional loan (loan repayment)
Loan balance, end of month
23,200
0×
9,832
$
40,000 $
74,168
$
40,000
Loan balance
$
80,000 $ 23,200
$
0
23,200
0
9,832
$
23,200
$
0
$
9,832](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F765a8e9a-70ad-4868-9f47-bcd0b6604532%2Fdd69481d-e8e6-44c9-b4f0-0794f72c6ef4%2Fr8e9mn_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Cash payments
$ 517,000
409,500
480,000
$ 459,400
351,900
524,000
Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this
requirement charge 1%, interest per month, paid at each month-end. The interest is computed based
on the beginning balance of the loan for the month. Any preliminary 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.)
Answer is complete but not entirely correct.
KAYAK COMPANY
Beginning cash balance
Add: Cash receipts
Cash Budget
January
February
March
SA
40,000
$ 40,000 $
74,168
517,000
409,500
480,000
557,000
449,500
554,168
Total cash available
Less: Cash payments for
All items excluding interest
459,400
351,900
524,000
Interest on loan
800
232 →
0
Total cash payments
460,200
352,132
524,000
Preliminary cash balance
96,800
97,368
30,168
Loan activity
Additional loan (loan repayment)
Ending cash balance
Loan balance - Beginning of month
Additional loan (loan repayment)
Loan balance, end of month
23,200
0×
9,832
$
40,000 $
74,168
$
40,000
Loan balance
$
80,000 $ 23,200
$
0
23,200
0
9,832
$
23,200
$
0
$
9,832
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