Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts Cash payments $ 518,000 405,500 480,000 $ 461,500 349,000 534,000 Kayak requires a minimum cash balance of $50,000 at each month-end. The company can borrow mone 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the I preliminary cash balance above $50,000 is used to repay loans at month-end. The company has a cash B loan balance of $100,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repaymen be indicated with minus sign.) Beginning cash balance Add: Cash receipts KAYAK COMPANY Cash Budget Janu February March $ 50,000 518,000 405,500 480,000 568,000 Total cash available Less: Cash payments for Cash payments 461,500 349,000 534,000 All items excluding interest 0 0 0 Total cash payments 461,500 349,000 534,000 Preliminary cash halance
Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts Cash payments $ 518,000 405,500 480,000 $ 461,500 349,000 534,000 Kayak requires a minimum cash balance of $50,000 at each month-end. The company can borrow mone 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the I preliminary cash balance above $50,000 is used to repay loans at month-end. The company has a cash B loan balance of $100,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repaymen be indicated with minus sign.) Beginning cash balance Add: Cash receipts KAYAK COMPANY Cash Budget Janu February March $ 50,000 518,000 405,500 480,000 568,000 Total cash available Less: Cash payments for Cash payments 461,500 349,000 534,000 All items excluding interest 0 0 0 Total cash payments 461,500 349,000 534,000 Preliminary cash halance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and
cash payments for loan principal and interest payments) for the first three months of next year.
January
February
March
Cash Receipts Cash payments
$ 518,000
405,500
480,000
$ 461,500
349,000
534,000
Kayak requires a minimum cash balance of $50,000 at each month-end. The company can borrow mone
1%, paid on the last day of each month. The interest is computed based on the beginning balance of the I
preliminary cash balance above $50,000 is used to repay loans at month-end. The company has a cash B
loan balance of $100,000 at January 1.
Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repaymen
be indicated with minus sign.)
Beginning cash balance
Add: Cash receipts
KAYAK COMPANY
Cash Budget
Janu
February
March
$
50,000
518,000
405,500
480,000
568,000
Total cash available
Less: Cash payments for
Cash payments
461,500
349,000
534,000
All items excluding interest
0
0
0
Total cash payments
461,500
349,000
534,000
Preliminary cash halance
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