Answer Happy

1 2 Kayak Company budgeted the following cash receipts (excluding cash receipts from Ioans received) and cash payments (excluding cash 3 payments for loan principal and interest payments) for the first three months of next year. 4 5 Cash Receipts Cash payments 6 January $525,000 $475,000 7 February 400,000 350,000 8 March 450,000 525,000 9 10 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to Minimum Monthly January 1 Cash January 1 11 meet this requirement charge 1% interest per month, paid at each month-end. The Cash Balance interest rate balance loan balance 12 interest is computed based on the beginning balance of the loan for the month. Any $30,000 1% $30,000 $60,000 13 preliminary cash balance above $30,000 is used to repay loans at month-end. The 14 company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. 15 16 Required: 17 Prepare monthly cash budgets for January, February, and March 19 (Use cells A5 to 114 from the given information to complete this question. Negative balances and Loan repayment 20 amounts (if any) should be indicated with minus sign. Negative amounts or amounts to be deducted should be 21 input and displayed as negativ All other answers should be input and displayed as positive values.) 22 18
IO 22 23 24 25 19 (Use cells A5 to 114 from the given information to complete this question. Negative balances and Loan repayment 20 amounts (if any) should be indicated with minus sign. Negative amounts or amounts to be deducted should be 21 input and displayed as negative values. All other answers should be input and displayed as positive values.) KAYAK COMPANY Cash Budget January February March 26 Beginning cash balance 27 28 Total cash available 29 Less: Cash payments for 30 All items excluding interest 31 Interest on loan 32 Total cash payments 33 Preliminary cash balance 34 Loan activity 35 36 Ending cash balance 37 Loan balance 38 Loan balance - Beginning of month 39 Additional loan (loan repayment) 40 Loan balance, end of month 41