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685 X tml ??SReg true& retur nurl: https%3A%2F%2Fconne apter 20 Exercise 20-17 Preparation of cash budgets (for three periods) LO P2 ng cash receipts (excluding cash recelpts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash $525,00o 400,000 450,000 $475,00o 350,000 525,000 February Kayak a minim um cash balance of $30,000 at each According to a credit agree month-end. In return, the bank has agreed that the company ca last day of each month. The interest is computed based on the n borrow up to $150,000 at a monthly interest rate of 1%, paid on beginning balance of the loan for the month. The company repays loan the as a cash balance of $30,000 and a loan balances and Loan repayment amounts (if any) should al with any cash in excess of $30000 on the last day of each month. The company h s3o000 on the last day of eacm he company has a cash balance of $60,000 at January 1. cash budgets be indiceted with minus sign.) for January. February, and March. (Negative KAYAK COMPANY January February March S 30,000 525,000 555,000 400,000 450,000 prev 4017 ?EE! | Next >Explanation / Answer
CASH BUDGET
January
February
March
Beginning cash balance
$30,000
$30,400
$69,290
Add: Budgeted Cash Receipts
$525,000
$400,000
$450,000
Total cash available
$555,000
$430,400
$519,290
Cash payments
$475,000
$350,000
$525,000
Interest Expense
$600
(60000*1%)
$110
(11000*1%)
$0
Preliminary cash balance
$79,400
$80,290
$525,000
Additional loan (loan repayment)
-$49,000
-$11,000
$0
Ending Cash Balance
$30,400
$69,290
$525,000
Loan Balance
Loan Balance - beginning of month
$60,000
$11,000
$0
Additional loan (loan repayment)
-$49,000
-$11,000
$0
Loan balance -- End of month
$11,000
$0
$0
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CASH BUDGET
January
February
March
Beginning cash balance
$30,000
$30,400
$69,290
Add: Budgeted Cash Receipts
$525,000
$400,000
$450,000
Total cash available
$555,000
$430,400
$519,290
Cash payments
$475,000
$350,000
$525,000
Interest Expense
$600
(60000*1%)
$110
(11000*1%)
$0
Preliminary cash balance
$79,400
$80,290
$525,000
Additional loan (loan repayment)
-$49,000
-$11,000
$0
Ending Cash Balance
$30,400
$69,290
$525,000
Loan Balance
Loan Balance - beginning of month
$60,000
$11,000
$0
Additional loan (loan repayment)
-$49,000
-$11,000
$0
Loan balance -- End of month
$11,000
$0
$0
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