- Kayak Co Budgeted The Following Cash Receipts Excluding Cash Receipts From Loans Received And Cash Payments Excludin 1 (42.7 KiB) Viewed 47 times
- Kayak Co Budgeted The Following Cash Receipts Excluding Cash Receipts From Loans Received And Cash Payments Excludin 2 (27.27 KiB) Viewed 47 times
Kayak Co. 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 $524,800 407,eee 450,000 Cash payments $470, 800 353,800 529,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $30.000 at each month-end. In return, the bank has agreed that the
company can borrow up to $150.000 at a monthly interest rate of 1% paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The
company repays loan principal with any cash in excess of $30,000 on the last day of each month. 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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) KAYAK
COMPANY Cash Budget For January, February, and March January February S 30,000 $ 30,000 $ 524,000 407,000 554,000 437,000 Beginning cash balance Cash receipts Total cash available Cash payments interest expense March 30.000 480,000 510,000
Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) March 30 000 480,000 510 000 KAYAK
COMPANY Cash Budget For January, February, and March January February Beginning cash balance s 30 000 $ 30 000 $ Cash receipts 524 000 407.000 Total cash available 554000 437,000 Cash payments interest expense Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance Loan balance Beginning of month $ 60.000 Additional loan (loan repayment) Loan balance - End of month 0