Solution-Prepare monthly cash budgets for each of first

Prepare monthly cash budgets for each of first three months

Assignment Help Accounting Basics

Reference no: EM131596120

Question - Kayak Co budgeted the following cash receipts (excluding cash receipts from loans received) and cash disbursements (excluding cash disbursements for loan principal and interest payments) for the first three months of next year.

	Cash Receipts	Cash Disbursements
January	$516,000	$485,000
February	404,500	349,000
March	471,000	530,000

According to a credit agreement with the company's bank, Kayak promises to have a minimum cash balance of $40.000 at each month-end. In return, the bank has agreed that the company can borrow up to 5160.000 at an annual interest rate of 12%, 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 available cash 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.

Required - Prepare monthly cash budgets for each of the first three months of next year.

Reference no: EM131596120

Questions Cloud

Basic of rapid demolition breach of contract claim : What was the basic of Rapid Demolition's breach of contract claim? To what did they feel entitled to? What did the claimant fail to do?

Where is the country unable to produce cola or pizza or both : Where is the country unable to produce cola or pizza or both? How does country face changes in opportunity costs as it possibly produces various combinations?

Examination of the artwork of three artists total : Examination of the artwork of three artists total. Select two artists who worked during the Great Depression and one Abstract Expressionist artist.

Describe differences between capital and money markets : Describe the differences between the capital markets and the money markets. What do you think is the most important thing to consider when financing a house?

Prepare monthly cash budgets for each of first three months : Kayak Co budgeted the following cash receipts and cash disbursements for the first three months of next year. Prepare monthly cash budgets

Determinant of capital structure of listed companies : Determinant of Capital Structure of Listed Companies in China from 2011-2016 - Factors that determine the capital structure of enterprisesfrom 2011-2016

Responsive culture and high performance culture : What is the difference between responsive culture and high performance culture?

What are the differences in arrest and clearance rates : For this scholarly activity, you will do further research on patterns of offenses and victimization. Research the crime rates in both your local area.

Can total quality management be effective in north america : Can Total Quality Management (TQM) be effective in North America? Is there wage rate discrimination in the government today?

User Account

All Pages

Prepare monthly cash budgets for each of first three months

Reference no: EM131596120

Reference no: EM131596120

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT