FKayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excludingcash payments for loan principal and interest payments) for the first three months of next yearJanuaryFebruaryHarchCash Receipts Cash payments$ 121,000411,000$465,000355,000527,000Kayak requires a minimum cash balance of $40,000month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminaryeach month-end Loans taken to meet this requirement charge 1%, interest percash 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 $80,000 at January 1Prepare monthly cash budgets for January, February, and March (Negative balances and Loan repayment amounts (if any) shouldbe indicated with minus sign.)Beginning cash balanceTotal cash availableTotal cash paymentsHutKAYAK COMPANYCash BudgetSevedJanuary$ 40,000FebruaryMarch

Cash budget is one of the important budget being prepared in business. It shows expected cash…

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 Harch Cash Receipts Cash payments $ 121,000 $405,000 411,000 435,000 Kayak requires a minimum cash balance of $40.000 at each month-end Loans taken to meet this requirement charge 15%, 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 1 355,000 527,000 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 Total cash available KAYAK COMPANY Cash Budget January $ 40,000 February March

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 Harch Cash Receipts Cash payments $ 121,000 $405,000 411,000 435,000 Kayak requires a minimum cash balance of $40.000 at each month-end Loans taken to meet this requirement charge 15%, 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 1 355,000 527,000 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 Total cash available KAYAK COMPANY Cash Budget January $ 40,000 February March

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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