3 points 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 $525,000 400,000 450,000 $ 475,000 350,000 525,000 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.) Answer is not complete. KAYAK COMPANY Beginning cash balance Add: Cash receipts Cash Budget January February March $ 30,000 $ 30,000 $ 68,906 525,000 400,000 450,000 555,000 430,000 518,906 Total cash available Less: Cash payments for Cash receipts 475,000 350,000 525,000 Interest on loan 600 494 Total cash payments 475,600 350,494 525,000 Preliminary cash balance (79,400) 79,506 (6,094) Loan activity Additional loan (loan repayment) (49,400) (10,600) Ending cash balance $ 30,000 $ 69,294 $ 30,000 Loan balance Loan balance - Beginning of month $ Additional loan (loan repayment) 60,000 $ (49,400) 10,600 $ (10,600) 69,294 Loan balance, end of month $ 10,600 $ 69,294