Kayak Co Budgeted The Following Cash Receipts Excluding Cash Receipts From Loans Received And Cash Payments Excluding 1 (28.38 KiB) Viewed 94 times
Kayak Co Budgeted The Following Cash Receipts Excluding Cash Receipts From Loans Received And Cash Payments Excluding 2 (51.64 KiB) Viewed 94 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 5522,000 467.500 425,000 Cash payments 5466,600 352.100 520,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return the bank has agreed that the company can borrow up to $160,000 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 $40.000 on the last day of each month. 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 balonces and Loan repayment amounts if any) should be indicated with minus sign)
I ICPAIC HIILIHY LASI vuuycus II Januay, I cuiualy, an NVIDICI veyauve WATCHILED CHU LUTEMaynie be indicated with minus sign.) March KAYAK COMPANY Cash Budget For January, February, and March January February Beginning cash balance $ 40,000 $ 40.000 Cash receipts Total cash available Cash payments Interest expense Preliminary cash balance Additional Joan (loan repayment) Ending cash balance Loan balance Loan balance - Beginning of month 80.000 Additional loan (loan repayment) Loan balance - End of month 0 S
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