Question

Saved Help Save & Exit Submit Check my work 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 Cash Cash Receipts $519,eee 405,5ee 481,eee payments $460,30e 346,800 533,0ee January February March According to a credit agreement with its bank, Kayak requires a minimum cash balance of $30,000 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 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 $30,000 on the last day of each month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1 paid on the last day of each month. The ces Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget Next 8 of 16 KPrev ainm 1040 AM 030 U0UO010

Answer 1

January Cash budget particulars Beginning cash balance | 30,000 Cash Recepts 579,000 Total cash available 549,000 cash payments 460,300) Interest Expense (60o) Preliminary cash balance 88,100 Additional Loan (Pepayment) (38,100) Ending cash balance 30,000 February march 30,000 86,181 405,500 451,000 435,500 537,781 (346,800) (333,000) (19) 89,681 4,781 (1900) 25,219 1 86,781 30,000 morith loan balance loan balance - Beqining maqutb 60,000 Additional loan Crepayment) | (58,100) loan balance - And 1900 1900 (1900) / 0 25,219 25,219 Interest Expense : 60,000x 1% = 600 for Tanuary 1900% Has 19 for Febraury