Ch. 7 - 17: Prepare monthly cash budgets for January-March.

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 first three months of next year Recei payment January February March 521,800 409,00e 475,000 $465,608 353,600 523,060 According to a credit agreement with the company's bank, Kayak promises to have a minimum cash balance of $50,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 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 $50,000 on the last day of each month. The company has a cash balance of $50,000 and a loan balance of $100,000 at January 1 Prepare monthly cash budgets for January, February, and March. (Negotive balances and Loan repayment amounts (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget For January, Febroary, and March February March Beginning cash balance 50,000 Total cash available Preliminary cash balance Ending cash balance Loan balance-Beginning of month Additional loan (loan repayment Loan balance-End of month 100,000