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  3. kayak company budgeted the following cash receipts

Kayak Company budgeted the following cash receipts fexcluding cash recelpts from loans recelved) and cash...

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Accounting

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Kayak Company budgeted the following cash receipts fexcluding cash recelpts from loans recelved) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year Kayak requires a minimum cash balance of $40,000 at each month-end. The company can bortow 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 $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a ioan balance of $80.000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative bolances ond Loan repayment amounts (If any) should be indlicated with minus sign.)

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