Question & Answer: Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash disbursements (excluding c…..

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 Disbursements $476,000 353,000 523,000 as January$516,000 February 412,000 March 481,000 According to a credit agreement with the companys 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 $150,000 at an annual interest ate 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 . Prepare monthly cash budgets for each of the first three months of next year. (Be certain to enter 0 wherever required. Negative balance and Loan repayment amount should be indicated with minus KAYAK COMPANY Cash Budget
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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 Disbursements $476,000 353,000 523,000 as January$516,000 February 412,000 March 481,000 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 $150,000 at an annual interest ate 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 . Prepare monthly cash budgets for each of the first three months of next year. (Be certain to enter “0 wherever required. Negative balance and Loan repayment amount should be indicated with minus KAYAK COMPANY Cash Budget

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Question & Answer: Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash disbursements (excluding c..... 1

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