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  3. kayak co. budgeted the following cash receipts (ex

Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash...

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Accounting

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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 first three months of next year. Cash Receipts $525,000 400,000 450,000 Cash payments $475,000 350,000 525,000 January March According to a credit agreement with the company's bank, Kayak promises to have a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on 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 $30,000 on the last day of each month. The company has a cash ba loan balance of $60,000 at January 1. be indicated with minus sign.) KAYAK COMPANY Cash Budget For January, February, and March March JanuaryFebruary Beginning cash balance Cash receipts 30,00030,00056,624 412,500 462,000 518,000 4of 8 Next>

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