According to a credit agreement with its bank,Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $160,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1.

Kayak Co. 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 rst three months of next year. Cash Cash Buccipts Bombs January $526,000 HITS, 000 February 409,000 350.. 000 March 469,000 533,. 000 According to a credit agreement with its bank. Kayak requires a minimum cash balance of $40,000 at each month-end. In return. the bank has agreed that the company can borrow up to $160,000 at a monthly interest rate of 196. paid on the last day of each month. The interest ls computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash In excess of$40.000 on the last day of each month. The company has a cash balance of $40.000 and a loan balance of$30.000 at January 1. Prepare monthly cash budgets for January. February. and March. {Negative balances and Loan repayment amounts {If any) should be indicatied with minus sign.) Beginning lush balance 3 40,000 $ 40.000 _ Cash receipts 520.000 409.000 409.000 ___ m ___ ___ Additional loan (loan repayment) Ending cash balance ___