Solution-Prepare monthly cash budgets for January and March

Prepare monthly cash budgets for January and March

Assignment Help Accounting Basics

Reference no: EM132516850

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 ?rst three months of next year.

	Cash Receipts	Cash Payments
January	$526,000	$475,000
February	409,000	358,000
March	469,000	533,000

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.

Required - Prepare monthly cash budgets for January, February and March.

Reference no: EM132516850

Questions Cloud

Calculate the net present value of the project : Working capital is recoverable at the end of this project. Annual cash inflows from the project RM 40,000. Calculate the net present value (NPV) of the project

Consider kant critique of happiness as an ethical principle : Consider Kant's critique of happiness as an ethical principle. Why does he think that happiness (or well-being) fails to provide an adequate standard

Paraphrasing a scripture how do you cite it in text : In APA format, when you are paraphrasing a scripture how do you cite it in text?

What was the amount of direct materials charged to that job : What was the amount of direct materials charged to that job? Howard Corporation has a job order costing system. The debits (credits) appear in the firm.

Prepare monthly cash budgets for January and March : According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000. Prepare monthly cash budgets for January and March

Energy prediction of domestic appliances dataset : Energy Prediction of Domestic Appliances Dataset - Build models and investigate the importance of each variable - Comparing with a linear regression model

How will that affect scope-costs and schedule : Your project sponsor and customer are impressed with your project schedule, How will that affect scope, costs, and schedule?

Calculate the cost of goods sold account : Assuming underapplied or overapplied overhead is transferred to cost of goods sold at the end of the period, calculate the cost of goods sold account.

Implementation of enterprise resource planning : You are in the planning stage for an implementation of an enterprise resource planning (ERP) solution for your firm. Y

User Account

All Pages

Prepare monthly cash budgets for January and March

Reference no: EM132516850

Reference no: EM132516850

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