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. January February March Cash Receipts Cash payments $ 460,300 342,800 522,000 $ 519,000 401,500 461,000 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.) Beginning cash balance Add: Cash receipts Total cash available Less Cash payments for All items excluding interest Total cash payments 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 Answer is not complete. KAYAK COMPANY Cash Budget O O ♡ O January 40,000 519,000 550,000 460,300 s 460,300 97,900 Loan balance March 40,000 $ 56,179 401,500 461,000 441,500 517,179 February 342,000 342,000 (57,900) (42,100) $ 40,000 $ 56,179 S 98,279 O 80,000 $ 22,100 (57,900) (42,100) 22,100 $ 00 522,000 00 522,000 (4,821) 44,821 40,000 0 44,821 44,821
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. January February March Cash Receipts Cash payments $ 460,300 342,800 522,000 $ 519,000 401,500 461,000 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.) Beginning cash balance Add: Cash receipts Total cash available Less Cash payments for All items excluding interest Total cash payments 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 Answer is not complete. KAYAK COMPANY Cash Budget O O ♡ O January 40,000 519,000 550,000 460,300 s 460,300 97,900 Loan balance March 40,000 $ 56,179 401,500 461,000 441,500 517,179 February 342,000 342,000 (57,900) (42,100) $ 40,000 $ 56,179 S 98,279 O 80,000 $ 22,100 (57,900) (42,100) 22,100 $ 00 522,000 00 522,000 (4,821) 44,821 40,000 0 44,821 44,821
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
100%
Transcribed Image Text: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.
January
February
March
Cash Receipts Cash payments
$ 519,000
401,500
461,000
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
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 interest
Total cash payments
Preliminary cash balance
Loan activity
Additional loan (loan repayment)
Ending cash balance
$ 460,300
342,800
522,000
Loan balance- Beginning of month
Additional loan (loan repayment)
Loan balance, end of month
Answer is not complete.
KAYAK COMPANY
Cash Budget
00
January
$ 40,000
519,000
559,000
460,300
460,300
97,900
O (57,900)
$
Loan balance
February
40,000 $
80,000 $
(57,900)
22,100 $
40,000 $
401,500
441,500
342,800✔
342,800
98,279
(42,100)
56,179 $
22,100 s
(42,100)
OS
March
56,179
461,000
517,179
522,000
0
522,000
(4.821)
44.821
40,000
0
44,821
44,821
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education