Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2Kayak 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 paymentsJanuary $ 516,000 $ 461,700February 403,000 348,700March 468,000 530,000 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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)

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 paymentsJanuary $ 516,000 $ 461,700February 403,000 348,700March 468,000 530,000 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.

Problem 13-66 (Algo) Comprehensive Budget Plan (LO 13-3, 4, 5)Lane Products manufactures a popular kitchen utensil. The company recently expanded, and the controller believes that it will need to borrow cash to continue operations. It opened negotiations with the local bank for a one-month loan of $66,000 starting March 1. The bank would charge interest at the rate of 0.5 percent per month and require the company to repay interest and principal on March 31. In considering the loan, the bank requested a projected income statement and cash budget for March.The following information is available:The company budgeted sales at 25,000 units per month in February, April, and May and at 22,000 units in March. The selling price is $73 per unit.The company offers a 2 percent discount for cash sales. The company's experience is that bad debts average 1 percent of credit sales.The inventory of finished goods on February 1 was 3,700 units. The desired finished goods inventory at the end of each month equals 25 percent of sales anticipated for the following month. There is no work in process.The inventory of raw materials on February 1 was 2,930 pounds. At the end of each month, the raw materials inventory equals no less than 20 percent of production requirements for the following month. The company purchases materials in quantities of 315 pounds per shipment.Selling expenses are 6 percent of gross sales. Administrative expenses, which include depreciation of $1,400 per month on office furniture and fixtures, total $76,200 per month.The manufacturing budget for the utensil, based on normal production of 24,000 units per month, follows.Materials (½ pound per utensil, 12,000 pounds, $30 per pound) $ 360,000Labor 133,000Variable overhead 73,000Fixed overhead (includes depreciation of $46,000) 133,000Total $ 699,000Required:a-1. Prepare schedules computing inventory budgets by months for production in units for February, March, and April.a-2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for February and March.b. Prepare a projected income statement for March. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. Assume that 40 percent of sales are cash sales.

Exercise 13-39 (Algo) Estimate Cash Collections (LO 13-4)Hackett Produce Supply is preparing its cash budget for April. The following information is available:Estimated credit sales for April $ 268,000Actual credit sales for March $ 159,000Estimated collections in April for credit sales prior to March $ 15,000Estimated write-offs in April for uncollectible credit sales $ 11,420Estimated provision for bad debts in April for credit sales in April $ 10,430Estimated collections in April for credit sales in April 25%Estimated collections in April for credit sales in March 70%Required:What is the estimated amount of cash receipts from accounts receivable collections in April?

Cash budget

You've been provided with the following Trial BalanceCalculate TOTAL ASSETSCash 25,450Accounts Receivable 25,500Inventory 85,000Prepaid Expenses 4,950Motor vehicle 68,000Equipment 155,000Accounts Payable 35,000Unearned Revenue 8,000Wages Payable 15,000Bank Loan 50,000Share Capital 235,000Retained Earnings 10,000Dividends -5,000Revenue 53,650Cost of Sales -12,450Wages Expense -15,000Interest expense -2,500Marketing expense -2,800Insurance expense -5,000