Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 $ 516,000 411,000 472,000 $ 463,900 358,900 528,000 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 Cash payments Interest on loan Total cash payments KAYAK COMPANY Cash Budget January February March $ 40,000 $ 40,000 $ 40,000 516,000 411,000 472,000 556,000 451,000 512,000 463,900 358,000 528,000 800 0 464,700 358,000 528,000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance Loan balance - Beginning of month $ 80,000 $ 800 $ 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 $ 516,000 411,000 472,000 $ 463,900 358,900 528,000 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 Cash payments Interest on loan Total cash payments KAYAK COMPANY Cash Budget January February March $ 40,000 $ 40,000 $ 40,000 516,000 411,000 472,000 556,000 451,000 512,000 463,900 358,000 528,000 800 0 464,700 358,000 528,000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance Loan balance - Beginning of month $ 80,000 $ 800 $ 0

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 20E
See similar textbooks
icon
Related questions
Question

Sagar 

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 $ 516,000 411,000 472,000 $ 463,900 358,900 528,000 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 Cash payments Interest on loan Total cash payments KAYAK COMPANY Cash Budget January February March $ 40,000 $ 40,000 $ 40,000 516,000 411,000 472,000 556,000 451,000 512,000 463,900 358,000 528,000 800 0 464,700 358,000 528,000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance Loan balance - Beginning of month $ 80,000 $ 800 $ 0
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 $ 516,000 411,000 472,000 $ 463,900 358,900 528,000 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 Cash payments Interest on loan Total cash payments KAYAK COMPANY Cash Budget January February March $ 40,000 $ 40,000 $ 40,000 516,000 411,000 472,000 556,000 451,000 512,000 463,900 358,000 528,000 800 0 464,700 358,000 528,000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance Loan balance - Beginning of month $ 80,000 $ 800 $ 0
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Fundamentals Of Financial Management, Concise Edi…
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS