Chap 20 Homework A Saved 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 first three months of next year. 33.33 points January February March Cash Receipts $ 527,000 403,500 473,000 Cash payments $473,800 350,300 528,000 eBook According to a credit agreement with its bank, Kayak requires a minimum cash balance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $140,000 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 $30,000 on the last day of each month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Hint Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Print References KAYAK COMPANY Cash Budget For January, February, and March January February Beginning cash balance $ 30,000 $ 30,000 $ Cash receipts 527,000 403,500 Total cash available 557,000 433,500 Cash payments (473,800) (350,300 Interest expense 600 74 Preliminary cash balance 82,600 83,126 Additional loan (loan repayment) (52,600) (7,400) Ending cash balance $ 30,000 $ 75,726 $ Loan balance March 75,726 473,000 548,726 (528,000) 20,726 30,000 $ 60,000 $ 7,400 $ 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month (52,600) 7,400 $ (7,400) 0 $ $ 10,274