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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 Receipts Cash payments January February March $ 522,000 405,000 $ 468,800 351,800 529,000 477,000 Kayak requires a minimum cash balance of $50,000 at each month-end. The company can borrow money 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. Any preliminary cash balance above $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance of $100,000 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.) Beginning cash balance Add: Cash receipts KAYAK COMPANY Cash Budget January February March $ 50,000 $ 50,000 522,000 405,000 477,000 572,000 455,000 Total cash available Less: Cash payments for Interest on loan 1,000 All items excluding interest 468,800 351,800 529,000 Total cash payments 469,800 351,800 529,000 Preliminary cash balance 102,200 Loan activity Additional loan (loan repayment) Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month $ 50,000 $ 50,000 Loan balance $ 100,000 0

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