Kayok Co budgeted the following cash receipts (excluding cash receipts from loans received) oand cash payments (excluding cashpayments for loan principal and interest payments) for the first three months of next year.JanuaryFebruaryMarchCashReceipts$516,000409, 500481,000Cashpaynents$457, 300350, 800S28,000According to a credit agreement with its bank, Kayak requires a minimum cash balance of $30,000 at each month-end. In return, thebank hes 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. Theinterest is computed based on the beginning balance of the loan faor the month. The company repays loan principal with any cash inexcess of $30,000 on the lest day of each month. The company has a cash bolance of $30,000 and a loan balance of $60,000 atJanuary 1.Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) shouldbe indicated with minus sign.)KAYAK COMPANYCash BudgetFor January, February, and MarchJanuaryFebruaryMarchBeginning cash balance30,000Total cash availablePrelminary cash balanceEndng cash balanceLoan balanceLoan balance - Beginning oft morth60.000Addtional loan (loan repayment)Loan bolance End of month

The cash budget is prepared to estimate the cash requirements and cash balance during the period.

Answered: Knyok Co budgeted the following cash…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 19E: Schedule of cash payments for service company Horizon Financial Inc. was organized on February 28....

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Similar questions

A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?
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My Aunts Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the month after the sale. Given the following sales, how much cash will be collected in March?
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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. CashReceipts Cashpayments January $ 516,000 $ 461,700 February 403,000 348,700 March 451,000 530,000 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 $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 $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…
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 $ 520,000 $ 467,900 February 402,500 350,400 March 466,000 531,000 Kayak requires a minimum cash balance of $50,000 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 $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance of $100,000 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.)

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