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. January February March Cash Receipts 5524,800 403,000 459,000 Cash Dayments 5473,000 352,880 522,000 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 $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 $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.) Answer is not complete. March 459.000 $ KAYAK COMPANY Cash Budget For January February, and March Fobry Beginning cash balance 5 40,000 40.000 Cash receipts 524.000 403,000 Total cash available 564,000 443.000 Cash payments 473,000 352.000 Interest expense 300 Preliminary cash balance Additional loan (loan repayment) Ending cash balance La bande Loan balance - Beginning of month 30,000 Additional loan doan repayment Loan Dance End of month 522.000 0