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Chapter 20 Homework 19 1 points Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 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 eBook January February March $ 519,000 406,500 474,000 $ 463,600 351,100 524,000 Hint Ask Print References Mc Graw Hill 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. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. KAYAK COMPANY Cash Budget January February March Beginning cash balance $ 40,000 $ 40,000 Add: Cash receipts 519,000 406,500 474.000 Total cash available 559,000 446,500 Less: Cash payments for All items excluding interest 463,600 351,100 524,000 Interest on loan 800 254 Total cash payments Preliminary cash balance 464,400 94,600 351,354 95,146 524,000 Loan activity Additional loan (loan repayment) Ending cash balance (54,600) $ 40,000 $ 40,000 Loan balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month $ 80,000 $ 25,400 $ 0 (54,600) $ 25,400 $ 0 Saved You received partial credit in the previous attempt. < Prev 19 of 19 Next > Help Save & Exit Submit View previous attempt Check my work

Chapter 20 Homework 19 1 points Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 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 eBook January February March $ 519,000 406,500 474,000 $ 463,600 351,100 524,000 Hint Ask Print References Mc Graw Hill 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. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. KAYAK COMPANY Cash Budget January February March Beginning cash balance $ 40,000 $ 40,000 Add: Cash receipts 519,000 406,500 474.000 Total cash available 559,000 446,500 Less: Cash payments for All items excluding interest 463,600 351,100 524,000 Interest on loan 800 254 Total cash payments Preliminary cash balance 464,400 94,600 351,354 95,146 524,000 Loan activity Additional loan (loan repayment) Ending cash balance (54,600) $ 40,000 $ 40,000 Loan balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month $ 80,000 $ 25,400 $ 0 (54,600) $ 25,400 $ 0 Saved You received partial credit in the previous attempt. < Prev 19 of 19 Next > Help Save & Exit Submit View previous attempt Check my work

Financial & Managerial Accounting
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter21: Budgeting
Section: Chapter Questions
Problem 9DQ: A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year...
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Chapter 20 Homework 19 1 points Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 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 eBook January February March $ 519,000 406,500 474,000 $ 463,600 351,100 524,000 Hint Ask Print References Mc Graw Hill 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. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. KAYAK COMPANY Cash Budget January February March Beginning cash balance $ 40,000 $ 40,000 Add: Cash receipts 519,000 406,500 474.000 Total cash available 559,000 446,500 Less: Cash payments for All items excluding interest 463,600 351,100 524,000 Interest on loan 800 254 Total cash payments Preliminary cash balance 464,400 94,600 351,354 95,146 524,000 Loan activity Additional loan (loan repayment) Ending cash balance (54,600) $ 40,000 $ 40,000 Loan balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month $ 80,000 $ 25,400 $ 0 (54,600) $ 25,400 $ 0 Saved You received partial credit in the previous attempt. < Prev 19 of 19 Next > Help Save & Exit Submit View previous attempt Check my work
Transcribed Image Text:Chapter 20 Homework 19 1 points Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 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 eBook January February March $ 519,000 406,500 474,000 $ 463,600 351,100 524,000 Hint Ask Print References Mc Graw Hill 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. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. KAYAK COMPANY Cash Budget January February March Beginning cash balance $ 40,000 $ 40,000 Add: Cash receipts 519,000 406,500 474.000 Total cash available 559,000 446,500 Less: Cash payments for All items excluding interest 463,600 351,100 524,000 Interest on loan 800 254 Total cash payments Preliminary cash balance 464,400 94,600 351,354 95,146 524,000 Loan activity Additional loan (loan repayment) Ending cash balance (54,600) $ 40,000 $ 40,000 Loan balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month $ 80,000 $ 25,400 $ 0 (54,600) $ 25,400 $ 0 Saved You received partial credit in the previous attempt. < Prev 19 of 19 Next > Help Save & Exit Submit View previous attempt Check my work
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