Exercise Algo Preparation of cash budgets for three periods LO P
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 $ at each monthend. Loans taken to meet this requirement charge
interest per month, paid at each monthend. The interest is computed based on the beginning balance of the loan
for the month. Any preliminary cash balance above $ is used to repay loans at monthend. The company has a
cash balance of $ and a loan balance of $ at January
Prepare monthly cash budgets for January, February, and March. Negative balances and Loan repayment amounts
if any should be indicated with minus sign.
