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

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 $\$40,000$ 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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) 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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)