Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 75,300 units. The following unit sales of the transmissions are expected during the rest of the year second quarter 251.000 units; third quarter, 452.000 units; and fourth quarter, 288,000 units. Company policy calls for the ending finished goods inventory of a quarter to equal 30% of the next quarter's budgeted sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. ELECTRO COMPANY Production Budget Second and Third Quarters Second Quarter Third Quarter Required units of available production Units to be produced 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. January February March Cash Receipts $521,000 404,500 482,000 Cash payments $466,700 350,200 527.000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $50,000 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 $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 (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget For January February, and March January February $ 50.000 March Beginning cash balance Total cash wailable Preliminary cash balance Ending cash balance Loan balance $ 100,000 $ Loan balance - Beginning of month Additional loan loan repayment) Loan balance - End of month