Question

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 Receipts			Cash payments
January	$	526,000		$	472,800
February		409,500			356,300
March		461,000			534,000

Cash Receipts Cash payments January $ 526,000 $ 472,800 February 409,500 356,300 March 461,000 534,000 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 $160,000 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 (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget For January, February, and March January February March Beginning cash balance $40,000 Total cash available Preliminary cash balance Ending cash balance Loan balance Loan balance - Beginning of month $80,000 $0 Additional loan (loan repayment) Loan balance - End of month

	KAYAK COMPANY Cash Budget For January, February, and March January February March Beginning cash balance $40,000 Total cash available Preliminary cash balance Ending cash balance Loan balance Loan balance - Beginning of month $80,000 $0 Additional loan (loan repayment) Loan balance - End of month

Answer 1

Answer Gsh bylget - Cash_94dg.eListhebydget_of_cash_inflows_and_outflow I for the particulyv pedod of_month. It shows how much company bq1_20_excel Gabbapfence and how much_company_ ll ان حاط حنا و fea9 - tgacly =ty تادوا_/ بازوها7 | 9246 Quesllet Oppoulugbyes.for_the_agahsabzon KAYAK COMPANY Cash Bydgct_fox_3_month. 112. Jan.yquy, Gebryavy & March Particulars January ويمنعها وواوه لك ---- 40000 February March 40000 65324, 409500461000 2 Cash Receipts 526000 Total Cash Available (142) 14 / Cogh Payments 566000449500 5 26324 (472800)_[656300) 634000) 5 / (7676 cash Available before int and loan 1 | Intevest expense Preliminery Grh Balance is-s) 93700 (800) 92400 93200 (276) 92924 1 (7676) - 1090 (Payment) / Additional 2047/ (52400) L(27600_|_47676 at Belon (7-8) 1 40000 _Ending Gsh_Bq1994_17-3): 40000 T 65324 I 40000

Logg Account Pyutinedyrs - 1049.84141ce - Begining of mooth Abditional loan cragment_o21099) January 1 February March 80000 27600 (52400)|(27600)| 47676 1099_B4l4ge - End of month 27600 47676 Working Notes 11. Calculation of Interest Interest_Expenst_: Monthly Outstanding Balance at the Beginlag of Marth x Interest Rate - Ta tevest Expeque (Tanyavy): In quest_Expense (February) 80000 (% of 80000) : 800 27600 X (14% of 27600) : 276 the end of month of march to Company will have to borrow at maintain mihing you canh billense