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 $ 524,000 $ 465,300 406,500 461,000 347,800 523,000 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 Interest on loan Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance KAYAK COMPANY Cash Budget ✓ ✓ ✓ ✓ Answer is not complete. ✓ $ January February 40,000 $ 40,000 524,000 564,000 (465,300) (800) (466,100) 97,900✔ (57,900)✓ 40.000 406,500✔ 446,500 (347,800)✓ (221)✓ (348,021) 98,479✔ (58,479) x 40.000 $ March 40,000 x 0
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 $ 524,000 $ 465,300 406,500 461,000 347,800 523,000 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 Interest on loan Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance KAYAK COMPANY Cash Budget ✓ ✓ ✓ ✓ Answer is not complete. ✓ $ January February 40,000 $ 40,000 524,000 564,000 (465,300) (800) (466,100) 97,900✔ (57,900)✓ 40.000 406,500✔ 446,500 (347,800)✓ (221)✓ (348,021) 98,479✔ (58,479) x 40.000 $ March 40,000 x 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Transcribed Image Text: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
Interest on loan
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
X Answer is not complete.
KAYAK COMPANY
Cash Budget
✓
✓
✓
✓
$
January
$
40,000 $
524,000
564,000
(465,300)✓
(800)✓
(466,100)
97,900✔
$
Loan balance
$
February
March
40,000 $ 40.000 x
406,500✔
446,500
(347,800)
(221)
(348,021)
98,479
(57,900)✓ (58,479)
40,000 $ 40,000
80,000 $
(57,900)
22,100
(58,479)
22,100 $ 36,379 x
$
0
36,379
Transcribed Image Text: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
$ 524,000
$ 465,300
406,500
461,000
347,800
523,000
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
Interest on loan
Total cash payments
Preliminary cash balance
Loan activity
Additional loan (loan repayment)
Ending cash balance
x Answer is not complete.
KAYAK COMPANY
Cash Budget
✓
✓
✔
✓
$
$
January
40,000 $
524,000
564,000
(465,300)✓
(800) ✔
(466,100)
97,900✔
February
40,000 $
406,500
446,500
(347,800)
(221)
(348,021)
98,479
(57,900)✓
40,000 $ 40,000
(58,479) X
March
40,000
0
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