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Kayak Company budgeted the following cash recelpts (excluding cash recelpts from loans recelved) and cash...

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Accounting

Kayak Company budgeted the following cash recelpts (excluding 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. Loans taken to meet this requirement charge 1%, Interest per
month, pald 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.
Note: Negatlve balances and Loan repayment amounts (If any) should be Indicated with minus sign.
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