Given the following information, complete the cash budget:

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 $ 520,000 $ 463,500 February 401,500 345,000 March 465,000 527,000  Kayak requires a minimum cash balance of $50,000 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 $50,000 is used to repay loans at month-end. The company has a cash balance of  $50,000 and a loan balance of $100,000 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.)

cash balance of $10,000 will be maintained throughout the cash budget period. Prepare a monthly cash budget for January and February and answer the following: How much surplus (or loan) is expected at the end of February? A $1,900 B. $200 C. $1,400 D. $3,100 E. none of the other choices is correct

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. January February March Cash Receipts 523,000 $ Beginning cash balance Total cash available 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. 408,500 476,000 Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Total cash payments Preliminary cash balance Loan activity Ending cash balance Cash payments $ 469,800…

The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:   June July August Sales $160,000   $185,000   $200,000   Manufacturing costs 66,000   82,000   105,000   Selling and administrative expenses 40,000   46,000   51,000   Capital expenditures _   _   120,000   The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent $12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of…

Dineshbhai

The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: Sales/Costs April May June Sales $150,000 $175,000 $195,000 Manufacturing costs 66,000 87,000 115,000 Selling and admin. expenses 40,000 46,000 51,000 Capital expenses 0 0 120,000   The company expects to sell about 15% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent $12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in December, and the annual property taxes are paid in September. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month.  Current…

On a separate sheet of paper, prepare a cash budget for the first four months of 2006, showing the amount of cumulative excess cash (loan balance). Basic company has planned a cash budget for the first four months. Estimates show that P60,000 should be collected in January and April for the dividends to be received from investments in stock of other companies. Each month, operating expenses for wages, rents, lights and others estimated to be P100,000 plus 10% of the preceding month sales. Sales and collections on accounts receivables are estimated as follows: 50% collected in the month of sale 30% collected in the month following the sale2 0% collected in the second month following the sale Payments for the merchandise purchased are scheduled so that 60% of the payments are made in the month of purchase with the balance paid the following month. The cash balance is estimated at P175,000 for January 1, 2006. Estimated net sales and purchases for the months are as follows:…

The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: Sales Sales/Costs Manufacturing costs Selling and admin. expenses Capital expenses April $150,000 66,000 40,000 0 May $175,000 87,000 46,000 0 June $195,000 115,000 51,000 120,000 The company expects to sell about 15% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent $12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in December, and the annual property taxes are paid in September. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of April 1 include cash of $42,000, marketable…

Spartan Industries has budgeted the following information for January Cash Receipts $ 43,400 Beginning Cash Balance $ 16,400 Cash Payments $ 61,400 Desired Ending Cash Balance $ 11,400 If there is not enough cash on hand to meet the desired ending balance, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,700 increments. Interest is paid monthly on the first day of the following month. The interest rate is 1 percent per month. The company had no debt before January 1 The shortage or surplus of cash before considering cash borrowed or interest payments in January would be a: Multiple Choice $1,600 shortage $9,800 shortage.