Blue Wave Company budgets the following unit sales for the next four months: September, 3,600 units; October, 4,100 units; November, 6,300 units; and December, 8,200 units. The company's policy is to maintain finished goods inventory equal to 70% of the next month's unit sales. At the end of August, the company had 2,100 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. BLUE WAVE COMPANY Production Budget September October November Next period budgeted sales units 70% 70 % 70 % Total required units Units to produce Kayak requires a minimum cash balance of $40,000 at each month-end. The company can borrow money 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. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 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.) KAYAK COMPANY Cash Budget January $ 40,000 February March Beginning cash balance Total cash available Additional loan (loan repayment) 0 0 0 Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance $ 80,000 $ 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month