A B C D E F G H 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. 1 2 3 4 5 6 January 7 February 8 March 9 Cash Receipts Cash payments $525,000 $475,000 400,000 450,000 350,000 525,000 10 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to 11 meet this requirement charge 1% interest per month, paid at each month-end. The 12 interest is computed based on the beginning balance of the loan for the month. Any 13 preliminary cash balance above $30,000 is used to repay loans at month-end. The 14 company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. 15 16 Required: 17 Prepare monthly cash budgets for January, February, and March. Minimum Cash Balance Monthly interest rate January 1 Cash balance January 1 loan balance $30,000 1% $30,000 $60,000 A 23 24 25 26 Beginning cash balance 27 28 Total cash available B KAYAK COMPANY Cash Budget C D January February March 29 Less: Cash payments for 30 31 All items excluding interest Interest on loan 32 Total cash payments 33 Preliminary cash balance 34 Loan activity 35 36 Ending cash balance 37 38 Loan balance - Beginning of month 39 Additional loan (loan repayment) 40 11 Loan balance, end of month Loan balance