Kasik Co. budgeted the following cash receipts and cash disbursements for the first three months of next year.
| |
Cash
Receipts |
Cash
Disbursements |
| January |
$ |
500,000 |
$ |
450,000 |
| February |
|
300,000 |
|
250,000 |
| March |
|
400,000 |
|
500,000 |
According to a credit agreement with the company's bank, Kasik promises to have a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at an annual interest rate of 12%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1.
Prepare monthly cash budgets for each of the first three months of next year. (Input all amounts as positive values except negative preliminary cash balance and repayment of loan to bank which should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)