2 3 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. (Click on the Graded Worksheet Tab below.) 15 CA 6 January 7 February 8B March Cash Receipts $705,000 Cash payments $654,000 564,000 538,000 694,000 614,000 Kayak requires a minimum cash balance of $32,000 at each month-end. Loans taken to meet this requirement charge 0% interest per month, paid at each month-end. The 10 interest is computed based on the beginning balance of the loan for the month. Any 13 preliminary cash balance above $32,000 is used to repay loans at month-end. The company has a cash balance of $32,000 and a loan balance of $64,000 at January 1. 13 Minimum cash balance 14 Monthly interest rate 15 January 1 cash balance 16 January 1 loan balance 17 $32,000 0.4% $32,000 $64,000 18 Required: Prepare monthly cash budgets for January, February, and March. 19