G Cash ReceiptsJanuaryFebruaryMarch$ 519,000406,500469,000Cash payments$ 459,200346,700529,000Kayak requires a minimum cash balance of $50,000 at each month-end. Loans taken to meet this requirement charge 1%, interest permonth, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminarycash balance above $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balanceof $100,000 at January 1.Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) shouldbe indicated with minus sign.)KAYAK COMPANYBeginning cash balanceAdd Cash receiptsCash BudgetJanuaryFebruaryMarch$50,000 $50,000519,000406,500469,000569,000456,500Total cash availableLess: Cash payments forAll items excluding interest459,200346,700529,000Interest on loanTotal cash payments459,200346,700529,000Preliminary cash balanceLoan activityAdditional loan (loan repayment)Ending cash balanceLoan balance - Beginning of monthAdditional loan (loan repayment)Loan balance, end of monthLoan balance$100,000$0

Answered: Cash Receipts January February March $…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. $400 balance, 14%, $100 payment, previous balance method
A $5000 short-term loan was received on December 3 rd 2018. This loan is scheduled to be repaid as nine uniform weekly payments. A grace period is granted for 5 weeks during which no repayments are required. The first repayment took place on January 7th and should go on for 8 more weekly payments. a] Create a cash flow diagram of the loan showing both the money received as loan and, in symbols, money paid back to the lender (R/week). b] What is the weekly payment if the contract says that the nominal interest rate on this loan is 30% compounded daily? In this part, please make the assumption that the 5 week grace period is interest-free. That is, the value of time during the grace period is zero. Starting from January 7th time value of money follows the contract. c] How much would the weekly payment be had the grace period not been interest free? That is, imagine now that time value of money follows the contract from December 3
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answer to the nearest cent.) $475 balance, 16%, $425 payment; average daily balance method
Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded, and that the month is 30 days long. (Round your answers to the nearest cent.) $400 balance, 15%, $50 payment (a) previous balance method $ 5 (b) adjusted balance method $ 4.5623 (c) average daily balance method $ 52.19173973X
Compute the size of the final payment for the following loan. Principal $ Periodic Payment $ Payment Period Payment Made at: Interest Rate % Compounding Period 8100 520 3 months beginning 8 quarterly The size of the final payment is $_ .?
An automobile loan of S26,000 at a nominal rate of 12% compounded monthly for 48 months requires equal end-of-month payments of $684.68. Complete the table below, as you would expect a bank to calculate the values. (Round to the nearest cent.) Repayment of Remaining Loan Principal $ 424.68 End of Month Interest Payment (n) Balance 1. $ 260 $25,575.32 2 S 255.75 $428.93 $25,146 39 13 $206.14
Given the annual interest rate and a line of an amortization schedule for that loan, complete the next line of the schedule. Assume that payments are made monthly. Annual Interest Paid on Interest Rate Payment Paid Principal Balance 11.6% $425.57 $64.23 $361.34 $6,280.78 Fill out the amortization schedule below. Annual Interest Paid on Payment Balance Interest Rate Paid Principal 11.6% $425.57 $64.23 $361.34 $6,280.78 (Round to the nearest cent as needed.)
For a three-month loan of $5,000 with an interest rate of 10 percent, determine usable funds, the AFC and APY for each of the following four loans (assume a normal deposit balance of $0): a. Regular interest loan (interest paid at maturity) b. Discounted interest loan c. Regular interest loan with a 10% compensating balance requirement d. Discounted interest with a 10% compensating balance requirement
An automobile loan of $15,000 at 12% APR compounded monthly for 36 months requires equal monthly payments of $498.21. (a) Complete the following table for the first two payment periods as you would expect the bank to calculate the values (show all calculations made below the table): End of Month(n) Interest Payment Repayment of Principal Remaining Loan Balance 0 N/A N/A $15,000 1 $348.21 2 $146.52 b) What is the portion of the prinicple payment to be made in the 23rd month?
Given the annual interest rate and a line of an amortization schedule for that loan, complete the next line of the schedule. Assume that payments are made monthly. Annual Interest Rate Payment 6.7% $468.39 Fill out the amortization schedule below. Interest Paid $42.28 Annual Interest Rate 6.7% Interest Paid $42.28 $ (Round to the nearest cent as needed.) Payment $468.39 Paid on Principal $426.11 Paid on Principal $426.11 $ Balance $7,150.14 Balance $7,150.14 $
Dear Bartleby, I need assistance calculating interest for part b only. My calculations show that $7520.00 is to be paid in June. b. Assume that management of SeaTech Inc. desires to maintain a minimum cash balance of $10,000 at the beginning of each month and has arranged a $50,000 line of credit with a local bank at an interest rate of 10% to ensure the availability of funds. Borrowing transactions are to occur only at the end of months in which the budgeted cash balance would otherwise fall short of the $10,000 minimum balance. Repayments of principal and interest are to occur at the end of the earliest month in which sufficient funds are expected to be available for repayment. (Use 360 days year for calculations.) Following are the budgeted income statements for the second quarter of 2019 for SeaTech Inc.: April May June Sales $ 112,000 $ 136,000 $ 152,000 Cost of goods sold* 76,800 91,200 100,800 Gross profit $ 35,200 $ 44,800 $…

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