Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 Kayak 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 Jary February March Cash Receipts $525,000 412,000 472,900 Chests $470,700 358,200 530,000 Kayak requires a minimum cash balance of $50,000 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 months. Any preliminary cash balance above $50,000 is used to repay loans at month-end. The company has a cash balance of $50000 and a loan balance of $100,000 at January 11 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 Begnining cash balance January 50,000 February March Total cash available Total cash payments Diary ruch balance Kayak requires a mmmum cash balance of $50,000 at each month end Loans taken to meet this requirement charges, terest per month, paid at each month-end The interest is computed based on the begining balance of the loan for the month. Any preliminary cash balance above $50.000 is used to repay loans at month end. 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 CashBudget Save t January February March Begining cash balance $ 50,000 Tolal cash mailable Total cash paymen Preliminary cash balance Loan activity Ending cash balance toan balance Beginning of mont Additional loan con payment Loan balance, end of month Loan balance $ 100.000