Answer:
Kayak Co.
Cash Budget
<u>January</u> <u>February</u> <u>March</u>
Cash inflows: $525,000 $400,000 $450,000
Cash outflows: ($475,000) ($350,000) ($525,000)
Monthly cash flow: $50,000 $50,000 ($75,000)
Monthly interests: ($600) ($106) $0
Initial cash balance: $30,000 $30,000 $69,294
Ending cash balance: $79,400 $79,894 ($5,706)
Required bank loan: $0 $0 $35,706
Payment of bank loan: ($49,400) ($10,600) $0
Total $30,000 $69,294 $30,000
Explanation:
Cash Receipts Cash Disbursements
January $525,000 $475,000
February $400,000 $350,000
March $450,000 $525,000
A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.
