Prepare monthly cash budgets for each of first three months

Assignment Help Computer Engineering

Reference no: EM131894860

Problem

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	522,000	479,000
February	406,500	365,000
March	478,000	530,000

According to a credit agreement with the company's bank, Kayak promises to have 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 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 $30,000 and a loan balance of $60,000 at January 1.

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

Reference no: EM131894860

Questions Cloud

Draw the truck arrival normal distribution pdf : Assume that truck arrival follows a normal distribution with a standard deviation of 0.5 trucks/hour. Draw the truck arrival normal distribution PDF.

Opportunities of management and business in developing : Evaluate the challenges and opportunities of Management and Business In Developing Countries

Prepare an amortization schedule for the four-year term : Question 2 - Installment note; amortization schedule. Prepare an amortization schedule for the four-year term of the installment note

Create a set of use case for the accompanying dentist system : Create a set of use cases for the accompanying dentist office system, but do not bother to identify the steps within each use case.

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

Link the competitive environment to organizational culture : Link the competitive environment to organizational culture, with a hint of technological change thrown in for good measure!

Discuss the three levels of analysis : Describe the data sources within the organization that provided information useful to identifying reasons for the gap such as organizational goals and objective

Human resources staffing policy : This week we studied the various types of global human resources staffing policies - e.g. geocentric, ethnocentric, etc.

What is the bottleneck in the process : Assuming the demand for the nurses is 60 patients per day, what is the utilization of the nurse team?

User Account

All Pages