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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 January February March Cash Receipts $515,000 405,500 482, Cash payments $455,200 345,700 532,000 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 $160,000 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 $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1 Prepare monthly cash budgets for January, February, and March (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Prepare monthly cash budgets for January February, and March (Negative balances and Loan repayment amounts if any) should be indicated with minus sign.) March 40.000 182,000 522.000 532.000 KAYAK COMPANY Cash Budget For January February, and March January February Beginning cash balance $ 40.000 s 40.000 5 Cash receipts 515,000 405 500 Total cash available 555.000 485,500 Cash payments 455,200 345 700 interest expense 800 Preliminary cash balance Additional loan on repayment Ending cash balance Loan balance Loan balance Beginning of month 5 80.000 $ Additional loan loan repayment Loan balance End of month

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