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CoursHeroTranscribedText: Kayak Co, budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for Ican principal and interest payments) for the first three months of next year January 1481,780 Furch 474.400 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40 000 at each month-end. in return, the bank has agreed that the company can borrow up to $150,090 at a monthly interest rate of I's 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 repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,090 er Prepare monthly cash budgets for January February and March (Negative balances and Loan repayment amounts fif any) should be Indicated with minus sign.) KAYAK COMPANY Cash Budget For January, February, and March January February March Beginning cash balance S 40,000 40,000 Cash receipts 549.000 409.500 474,000 Total cash available 556,000 449.500 Cash payments 461,700 355,200 530,000 Interest expense Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance Loan balance - Beginning of month S 80,000 S 0 Additional loan (loan repayment) Loan balance - End of month

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