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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

FINANCIAL ACCOUNTING
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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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
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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