Solution-Prepare monthly cash budgets for January and

Prepare monthly cash budgets for January and February

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Reference no: EM133057474

Question - Kayak Company 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	$522,000	$468,800
February	401,000	347,800
March	456,000	525,000

Kayak requires a minimum cash balance of $40,000 at each month-end. The company can borrow money 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. Any preliminary cash balance above $40,000 is used to repay loans at month-end. 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 January, February, and March.

Reference no: EM133057474

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Prepare monthly cash budgets for January and February

Reference no: EM133057474

Reference no: EM133057474

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