Question

Below are the forecasted cash receipts and cash payments for Kaden Company for the first four months of the year.

Below are the forecasted cash receipts and cash payments for Kaden Company for the first four months of the year. ***.. January February March April Budgeted cash collections 100,000 75,000 75,000 146,000 127,000 67,000 120,000 Budgeted cash payments: Operating expenses Dividends Equipment purchase Total budgeted cash payments 92,000 20,000 40,000 152,000 127,000 67,000 120,000 On January 1, Kaden Company had a cash balance of $3,000. Beginning this year, Kaden has decided to have a policy of maintaining a cash balance of at least $15,000 at the end of each month. - Kaden plans to pay back loans as soon as possible; so, if Kaden has surplus cash in any month, that cash will be used to repay any outstanding loans. Also, assume that there is no interest on Kaden's loans. Prepare Kaden's borrowing and repayment budget through April. January February March April Beginning cash balance (3pts) Budgeted cash balance Cash available Budget cash payments: Operating expenses Dividends Equipment purchases Total budgeted cash payments Preliminary budgeted cash balance Borrowing (4pts) Loan repayment (4pts) . Ending Cash Balance (4pts)

Answer 1

	January	February	March	April
Beginning cash balance	3000	15000	15000	15000
Budgeted cash collections	100000	75000	75000	146000
Cash available	103000	90000	90000	161000
Budgeted cash payments:
Operating expenses	127000	67000	92000	120000
Dividends	0	0	20000	0
Equipment purchases	0	0	40000	0
Total budgeted cash payments	127000	67000	152000	120000
Preliminary budgeted cash balance	-24000	23000	-62000	41000
Borrowing	39000		77000	0
Loan repayment	0	8000	0	26000
Ending cash balance	15000	15000	15000	15000