JanuaryFebruaryMarch$ 518,000406,500478,000Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest permonth, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminarycash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balanceof $80,000 at January 1.Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (If any) shouldbe Indicated with minus sign.)Beginning cash balanceAdd: Cash receiptsTotal cash availableLess: Cash payments forAll items excluding interestInterest revenueTotal cash paymentsPreliminary cash balance$ 465,900354,400535,000Loan activityAdditional loan (loan repayment)Ending cash balanceLoan balance - Beginning of monthAdditional loan (loan repayment)Loan balance, end of monthKAYAK COMPANYCash Budget$January40,000 $518,000558,000465,900465,900Loan balance$80,000February40,000 $406,500446,500354,400354,400$March80,000478,000558,000535,000535,0000

January February March $ 518,000 406,500 478,000 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. Beginning cash balance Add: Cash receipts Total cash available $ 465,900 354,400 535,000 Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (If any) should be Indicated with minus sign.) Less: Cash payments for All items excluding internet KAYAK COMPANY Cash Budget $ January 40,000 $ 518,000 558,000 February 40,000 406,500 446,500 $ March 80,000 478,000 558,000

January February March $ 518,000 406,500 478,000 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. Beginning cash balance Add: Cash receipts Total cash available $ 465,900 354,400 535,000 Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (If any) should be Indicated with minus sign.) Less: Cash payments for All items excluding internet KAYAK COMPANY Cash Budget $ January 40,000 $ 518,000 558,000 February 40,000 406,500 446,500 $ March 80,000 478,000 558,000

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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