Exercise $20-17($Algo$)$ Preparation of cash budgets $($for three periods$)$ LO P$215$SavedHelp Save & ExitSubmitKayak Company 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 FebruaryMarchCash Receipts Cash payments$$523,000$$ $465,400408,000350,400462,000522,000$Kayak requires a minimum cash balance of $$40,000$ at each month$-$end. Loans taken to meet this requirement charge $1\%,$ interest per month, paid at each month$-$end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $$40,000$ is used to repay loans at month$-$end. 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 COMPANYCash BudgetJanuaryFebruaryMarchBeginning cash balance$$40,000$Total cash availableTotal cash payments$00$Preliminary cash balanceLoan activityEnding cash balanceLoan balanceLoan balance $-$ Beginning of month$$80,000$Additional loan $($loan repayment$)$