Homework Help is Here – Start Your Trial Now!
Business
Accounting
< Back 19 This window shows your responses and what was marked correct and incorrect from your previous attempt. Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 0.79/1 points awarded 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. $ 519,000 406,500 $ 463,600 351,100 Cash Receipts Cash payments Scored January February March Kayak requires 474,000 524,000 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. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. KAYAK COMPANY Cash Budget January February March Beginning cash balance S 40,000 S 40,000 $ 40,000 Add: Cash receipts ✔ 519,000 Total cash available 559,000 406,500 446,500 474,000 514,000 Less: Cash payments for ✓ All items excluding interest 463,600 351,100 524,000 Interest on loan ✓ Total cash payments Preliminary cash balance 800✓ 464,400 94,600 254 0☑ 351,354 95,146 524,000 (10,000) Loan activity Additional loan (loan repayment) Ending cash balance ✔ (54,600) (55,146) S 40,000 $ 40,000x 50,000 40,000 Loan balance Loan balance Beginning of month Additional loan (loan repayment) Loan balance, end of month 0 $ 50,000 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. S 80,000 $ S (54,600) 25,400 $ 25,400 $ (55,146) 0 50,000

< Back 19 This window shows your responses and what was marked correct and incorrect from your previous attempt. Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 0.79/1 points awarded 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. $ 519,000 406,500 $ 463,600 351,100 Cash Receipts Cash payments Scored January February March Kayak requires 474,000 524,000 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. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. KAYAK COMPANY Cash Budget January February March Beginning cash balance S 40,000 S 40,000 $ 40,000 Add: Cash receipts ✔ 519,000 Total cash available 559,000 406,500 446,500 474,000 514,000 Less: Cash payments for ✓ All items excluding interest 463,600 351,100 524,000 Interest on loan ✓ Total cash payments Preliminary cash balance 800✓ 464,400 94,600 254 0☑ 351,354 95,146 524,000 (10,000) Loan activity Additional loan (loan repayment) Ending cash balance ✔ (54,600) (55,146) S 40,000 $ 40,000x 50,000 40,000 Loan balance Loan balance Beginning of month Additional loan (loan repayment) Loan balance, end of month 0 $ 50,000 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. S 80,000 $ S (54,600) 25,400 $ 25,400 $ (55,146) 0 50,000

Financial & Managerial Accounting
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter21: Budgeting
Section: Chapter Questions
Problem 9DQ: A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year...
See similar textbooks
icon
Related questions
Question

need help to solove it 

< Back 19 This window shows your responses and what was marked correct and incorrect from your previous attempt. Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 0.79/1 points awarded 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. $ 519,000 406,500 $ 463,600 351,100 Cash Receipts Cash payments Scored January February March Kayak requires 474,000 524,000 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. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. KAYAK COMPANY Cash Budget January February March Beginning cash balance S 40,000 S 40,000 $ 40,000 Add: Cash receipts ✔ 519,000 Total cash available 559,000 406,500 446,500 474,000 514,000 Less: Cash payments for ✓ All items excluding interest 463,600 351,100 524,000 Interest on loan ✓ Total cash payments Preliminary cash balance 800✓ 464,400 94,600 254 0☑ 351,354 95,146 524,000 (10,000) Loan activity Additional loan (loan repayment) Ending cash balance ✔ (54,600) (55,146) S 40,000 $ 40,000x 50,000 40,000 Loan balance Loan balance Beginning of month Additional loan (loan repayment) Loan balance, end of month 0 $ 50,000 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. S 80,000 $ S (54,600) 25,400 $ 25,400 $ (55,146) 0 50,000
Transcribed Image Text:< Back 19 This window shows your responses and what was marked correct and incorrect from your previous attempt. Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 0.79/1 points awarded 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. $ 519,000 406,500 $ 463,600 351,100 Cash Receipts Cash payments Scored January February March Kayak requires 474,000 524,000 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. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. KAYAK COMPANY Cash Budget January February March Beginning cash balance S 40,000 S 40,000 $ 40,000 Add: Cash receipts ✔ 519,000 Total cash available 559,000 406,500 446,500 474,000 514,000 Less: Cash payments for ✓ All items excluding interest 463,600 351,100 524,000 Interest on loan ✓ Total cash payments Preliminary cash balance 800✓ 464,400 94,600 254 0☑ 351,354 95,146 524,000 (10,000) Loan activity Additional loan (loan repayment) Ending cash balance ✔ (54,600) (55,146) S 40,000 $ 40,000x 50,000 40,000 Loan balance Loan balance Beginning of month Additional loan (loan repayment) Loan balance, end of month 0 $ 50,000 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. S 80,000 $ S (54,600) 25,400 $ 25,400 $ (55,146) 0 50,000
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
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
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS