Exercise 07-17 Preparation of cash budgets (for three periods) LO P2 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. Cash January February Cash Receipts $518, eee 403, eee 476.cee payments $467, Bee 352,800 527 000 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 $140.000 at a monthly Interest rate of 1%. pald 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. Prepare monthly cash budgets for January, February, and March (Negative balances and Loan repayment amounts (if any) should be Indicated with minus slgn.) KAYAK COMPANY Cash Budget For January February, and March March Beginning cash balance Cash 470 000 Tota cash available Cash payments interes: exoense Ex 7-17 merest is compulu vastu on ue Deyirmy Udince or ve oan of lemon ne company repays Iudi pri Wiaty Casti 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. 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 March Beginning cash balance $ 40.000 $ 40.000 Cash receipts 518.000 470.000 Total cash available Cash payn Preliminary cash balance Additional loan loan repayment) Ending cash balance Loan balance Loan balance - Beginning of month 30.000 can repayment Loan balance - End of month