1. 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. Cash Receipts Cash payments January $ 518,000 $ 460,400 February 409,000 351,400 March 468,000 527,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per 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 $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.

2. Jasper Company has 60% of its sales on credit and 40% for cash. All credit sales are collected in full in the first month following the sale. The company budgets sales of $524,000 for April, $534,000 for May, and $559,000 for June. Total sales for March are $308,300.

Prepare a schedule of cash receipts from sales for April, May, and June.

3. Fortune Incorporated is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are budgeted at 150,000 for the first quarter. Cost of goods sold is $12 per unit. Other expense information for the first quarter follows.

Sales Commissions	10%	of sales dollars
Rent	$ 44,000	per quarter
Advertising	$ 576,000	per quarter
Office salaries	$ 256,000	per quarter
Depreciation	$ 104,000	per quarter
Interest	1.25%	quarterly on $210,000 note payable
Tax rate	30%

Prepare a budgeted income statement for the first quarter ended March 31.

Note: Round your intermediate and final answers to the nearest whole dollar.

\begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ KAYAK COMPANY } \\ \hline \multicolumn{5}{|c|}{ Cash Budget } \\ \hline & \multicolumn{2}{|c|}{ January } & \multirow[t]{2}{*}{ February } & March \\ \hline Beginning cash balance & $ & 40,000 & & \\ \hline & & & & \\ \hline \multicolumn{5}{|l|}{ Total cash available } \\ \hline & & & & \\ \hline & & & & \\ \hline \multicolumn{5}{|c|}{} \\ \hline Total cash payments & & 0 & 0 & 0 \\ \hline \multicolumn{5}{|l|}{ Preliminary cash balance } \\ \hline \multicolumn{5}{|l|}{ Loan activity } \\ \hline & & & & \\ \hline \multicolumn{5}{|l|}{ Ending cash balance } \\ \hline \multicolumn{5}{|c|}{ Loan balance } \\ \hline Loan balance - Beginning of month & $ & 80,000 & & $ \\ \hline \multicolumn{5}{|l|}{ Additional loan (loan repayment) } \\ \hline Loan balance, end of month & & & & \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline \multicolumn{4}{|c|}{ JASPER COMPANY } \\ \hline \multicolumn{3}{|c|}{ Schedule of Cash Receipts from Sales } \\ \hline Sales & April & \multicolumn{1}{|c|}{ May } & June \\ \hline Cash receipts from: & 524,000 & 534,000 & 559,000 \\ \hline Cash sales & & & \\ \hline Collections of prior period sales & & & \\ \hline Total cash receipts & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ FORTUNE, INCORPORATED } & \\ \hline \multicolumn{2}{|c|}{ Budgeted Income Statement } & \\ \hline For Quarter Ended March 31 & & \\ \hline & & \\ \hline & & \\ \hline Selling, general and administrative expenses & & \\ \hline \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}