Kayak Co. budgeted the following cash recelpts (excluding cash recelpts from loans recelved) and cash payments (excluding cash payments for loan principal and Interest payments) for the first three months of next year. Cash Cash Receipts $519,eee payments $464,7ee 358, 208 524, еее January February 412,5ee March 464,eee According to a credlt 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 $140,000 at a monthly Interest rate of 1% , pald 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 balances and Loan repayment amounts (If any) should be indicated wlth minus sign.) KAYAK COMPANY Cash Budget For January, February, and March January February March Beginning cash balance 40,000 Cash receipts Total cash available Cash payments interest expense Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance Loan balance Beginning of month S 80,000 Additional loan (loan repayment) Loan balance End of month
Kayak Co. budgeted the following cash recelpts (excluding cash recelpts from loans recelved) and cash payments (excluding cash payments for loan principal and Interest payments) for the first three months of next year. Cash Cash Receipts $519,eee payments $464,7ee 358, 208 524, еее January February 412,5ee March 464,eee According to a credlt 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 $140,000 at a monthly Interest rate of 1% , pald 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 balances and Loan repayment amounts (If any) should be indicated wlth minus sign.) KAYAK COMPANY Cash Budget For January, February, and March January February March Beginning cash balance 40,000 Cash receipts Total cash available Cash payments interest expense Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance Loan balance Beginning of month S 80,000 Additional loan (loan repayment) Loan balance End of month
Chapter6: Managing Cash Flow
Section: Chapter Questions
Problem 1EP
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Transcribed Image Text:Kayak Co. budgeted the following cash recelpts (excluding cash recelpts from loans recelved) and cash payments (excluding cash
payments for loan principal and Interest payments) for the first three months of next year.
Cash
Cash
Receipts
$519,eee
payments
$464,7ee
358, 208
524, еее
January
February
412,5ee
March
464,eee
According to a credlt 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 $140,000 at a monthly Interest rate of 1% , pald 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 balances and Loan repayment amounts (If any) should
be indicated wlth minus sign.)
KAYAK COMPANY
Cash Budget
For January, February, and March
January
February
March
Beginning cash balance
40,000
Cash receipts
Total cash available
Cash payments
interest expense
Preliminary cash balance
Additional loan (loan repayment)
Ending cash balance
Loan balance
Loan balance Beginning of month
S
80,000
Additional loan (loan repayment)
Loan balance End of month
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