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Kayak Company 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 Receipt Cash payments January $ 510,000 $ 163,900 February 402,000 349,900 March 453,000 522,900 Kayak requires a minimum cash balance of $40,000 at each month-end Loans taken to meet this requirement charge 1%, interest per month, paid at each month end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. 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 bolonces and Loan repayment amounts (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget January February $ 40,000 $ 40,000 March Beginning cash balance Total cash available SHE Nayt Cash Budget January February $ 40,000 $ 40,000 March Beginning cash balance Total cash available 0 Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance s 80,000 $ 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month

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