2 5 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 points January February March eBook Hint Print References $ 517,000 404,000 $ 462,700 349,700 523,000 467,000 Kayak requires a minimum cash balance of $30,000 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 $30,000 is used to repay loans at month-end. The company has a cash balance of $30,000 and a loan balance of $60,000 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 $ 30,000 517,000 547,000 Total cash available Less: Cash payments for Interest on loan 600 All items excluding interest 462,700 Total cash payments 463,300 0 0 Preliminary cash balance 83,700 Loan activity Additional loan (loan repayment) Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month Loan balance $ 60,000 $ 0