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Exercise 20-17(Algo) Preparation of cash budgets (for three periods) LO P2 Kayak Company...

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Accounting

Exercise 20-17(Algo) Preparation of cash budgets (for three periods) LO P2
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.
Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to meet this requirement
month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary
cash balance above $30,000 is used to repay loans at month-end. The company has a cash balance of $30,000 and a loan balance
of $60,000 at January 1.
Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should
be indicated with minus sign.)
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