Homework Help is Here – Start Your Trial Now!
Business
Accounting
Cash Receipts January February March $ 519,000 406,500 469,000 Cash payments $ 459,200 346,700 529,000 Kayak requires a minimum cash balance of $50,000 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 $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance of $100,000 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 Beginning cash balance Add Cash receipts Cash Budget January February March $ 50,000 $ 50,000 519,000 406,500 469,000 569,000 456,500 Total cash available Less: Cash payments for All items excluding interest 459,200 346,700 529,000 Interest on loan Total cash payments 459,200 346,700 529,000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month Loan balance $ 100,000 $ 0

Cash Receipts January February March $ 519,000 406,500 469,000 Cash payments $ 459,200 346,700 529,000 Kayak requires a minimum cash balance of $50,000 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 $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance of $100,000 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 Beginning cash balance Add Cash receipts Cash Budget January February March $ 50,000 $ 50,000 519,000 406,500 469,000 569,000 456,500 Total cash available Less: Cash payments for All items excluding interest 459,200 346,700 529,000 Interest on loan Total cash payments 459,200 346,700 529,000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month Loan balance $ 100,000 $ 0

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...
See similar textbooks
icon
Related questions
Question

G

Cash Receipts January February March $ 519,000 406,500 469,000 Cash payments $ 459,200 346,700 529,000 Kayak requires a minimum cash balance of $50,000 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 $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance of $100,000 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 Beginning cash balance Add Cash receipts Cash Budget January February March $ 50,000 $ 50,000 519,000 406,500 469,000 569,000 456,500 Total cash available Less: Cash payments for All items excluding interest 459,200 346,700 529,000 Interest on loan Total cash payments 459,200 346,700 529,000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month Loan balance $ 100,000 $ 0
Transcribed Image Text:Cash Receipts January February March $ 519,000 406,500 469,000 Cash payments $ 459,200 346,700 529,000 Kayak requires a minimum cash balance of $50,000 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 $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance of $100,000 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 Beginning cash balance Add Cash receipts Cash Budget January February March $ 50,000 $ 50,000 519,000 406,500 469,000 569,000 456,500 Total cash available Less: Cash payments for All items excluding interest 459,200 346,700 529,000 Interest on loan Total cash payments 459,200 346,700 529,000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month Loan balance $ 100,000 $ 0
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SEE MORE TEXTBOOKS