Exercise 7-17 Preparation of cash budgets (for three periods) Lo P2 Kayak Co 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 Cash payment $478, 806 355, 800 533,800 Receipts $524,08 3anuary February March 409,860 476,000 According to a credit agreement with the company's bank Kayak 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 S140,000 at a monthly interest rate of 1%, 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 $30.000 on the last day of each 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 January. February, and March (Negetive balances and Loan repayment amounts (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget For January, February, and March February Beginning cash balance S30,000 5 30.000 409.000476000 439 000 Cash receipts Total cash available Cash payments Interest expense Preliminary cash balance Additional loan (loan repayment Ending cash balance 524,000 554,000 30,000 30,000 Loan balance Loan balance - Beginning of month Additional loan (loan repayment) S60.000 Loan balance End of month