yak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding sh payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts $ 516,000 408,000 455,000 yak requires a minimum cash balance of $50,000 at each month-end. Loans taken to meet this requirement charge 1%, Interest per Onth, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary sh balance above $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance $100,000 at January 1. eginning cash balance tal cash available Cash payments $ 458,400 epare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should Indicated with minus sign.) 350,400 535,000 atal cash payments reliminary cash balance KAYAK COMPANY Cash Budget $ January 50,000 February March

yak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding sh payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts $ 516,000 408,000 455,000 yak requires a minimum cash balance of $50,000 at each month-end. Loans taken to meet this requirement charge 1%, Interest per Onth, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary sh balance above $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance $100,000 at January 1. eginning cash balance tal cash available Cash payments $ 458,400 epare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should Indicated with minus sign.) 350,400 535,000 atal cash payments reliminary cash balance KAYAK COMPANY Cash Budget $ January 50,000 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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A company requires a minimum $12,400 cash balance at each month-end. If necessary, a loan is taken to meet this requirement at a cost of 1% interest per month (paid at the end of each month). Any preliminary cash balance above $12,400 is used to repay loans at month-end. The cash balance on March 1 is $12,400, and the company has no outstanding loans. Budgeted cash receipts from sales are: March, $26,000; April, $32,400; and May, $41,000. Budgeted cash payments (excluding loan or interest payments) are: March, $30,000; April, $30,200; and May, $32,400. Required: Prepare a cash budget for March, April, and May. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar. Beginning cash balance Add: Cash receipts from sales Total cash available Add: Cash receipts from sales Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance,…
Vargas Company is preparing a cash budget for April. The company has $27,000 cash at the beginning of April and anticipates $60,000 in cash receipts and $64,500 in cash disbursements during April. Vargas Company has an agreement with its bank to maintain a cash balance of at least $25,000. To maintain the $25,000 required balance, during April the company must: Borrow $2,500 from the owner. Borrow $5,000 from the owner. Borrow $7,500 from the owner. Borrow $4,500 from anyone other than the bank or the owner.
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How do you get the last addition loan and ending cash balance?
Given the following information, complete the cash budget: Collections occur one month after the sale. January’s credit sales were $90,000. The firm has a certificate of deposit for $50,000 that matures in April. Salaries are $150,000 a month. The monthly mortgage payment is $20,000. Monthly depreciation is $10,000. Property tax of $35,000 is due in February. Round your answers to the nearest dollar. Enter the disbursements values as positive values. Use a minus sign to enter shortage of cash, negative beginning and ending cash values, if any. Do not leave any cells blank. If the answer is zero, enter "0". February March April Sales $ 170,000 $ 200,000 $ 230,000 Cash sales $ 35,000 $ 20,000 $ 70,000 Collections $ $ $ Other receipts $ $ $ Total cash receipts $ $ $ Salaries $ $ $ Mortgage $ $ $ Other disbursements $ $ $ Total cash disbursements $ $ $ Net…
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. Cash Receipts Cash payments January $ 524,000 $ 465,300 February 412,500 353,800 March 475,000 526,000 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.
Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement at a cost of 2% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $30,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow. Cash receipts Cash payments Beginning cash balance July August $ 81,000 $ 107,000 109,000 95,900 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash available MOTORS CORPORATION Cash Budget Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan activity Loan…
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 $ 521,000 410,500 480,000 Cash payments $ 467,800 357,300 528,000 Kayak requires a minimum cash balance of $30,000 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 $30,000 is used to repay loans at month-end. The company has a cash balance of $30,000 and a loan balance of $60,000 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. Beginning cash balance Add: Cash receipts Total cash available KAYAK COMPANY Cash Budget January $ 30,000…
The following information was taken from Trusted Care Company's cash budget for the month of April: Beginning cash balance Cash receipts Cash disbursements If the company has a policy of maintaining an end of the month minimum cash balance of $25,000, the amount the company would have to borrow is $10,000 $13,000 $11,000 $0 $27,000 62,000 75,000
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Surity Corporation is preparing its cash payments budget for next month. The following information pertains to the cash payments: 1 Click the icon to view the data.) How much cash will be paid out next month? Surity Corporation Cash Payments Budget Cash payments for direct materials: 45% of last month's purchases 55% of next month's purchases Cash payments for direct labor Cash payments for manufacturing overhead Cash payments for operating expenses Cash payment for taxes Total cash payments