Knyok 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 $516,000 409, 500 481,000 Cash January February paynents $457, 300 350,800 S26,000 March According to a credit agreement with its bank, Kayak requires 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 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 any cash in excess of $30,000 on the lest day of each month. The company hes a cash belance of $30,000 and a loan balance of $60,000 at Jonuary 1. Prepare monthly cash budgets for January, Februnry, and March. (Negative balances and Loan repayment emounts (if any) should be indiceted with minus sign.)
Knyok 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 $516,000 409, 500 481,000 Cash January February paynents $457, 300 350,800 S26,000 March According to a credit agreement with its bank, Kayak requires 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 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 any cash in excess of $30,000 on the lest day of each month. The company hes a cash belance of $30,000 and a loan balance of $60,000 at Jonuary 1. Prepare monthly cash budgets for January, Februnry, and March. (Negative balances and Loan repayment emounts (if any) should be indiceted with minus sign.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 18E
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