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. JANUARY February March Cash Receipts $527,000 405,500 463,000 Cab payments 470,500 249,000 $31,000 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 11 Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Beginning cash balance Add: Cash receipts KAYAK COMPANY Cash Budget January February March $ 40,000 $ 40,000 $ 40,000 527,000 405,500 463.000 507,000 445,500 503,000 Total cash available Loss: Cash payments for All items excluding interest (470,500) (349,000) 531,000 Interest on loan (8,000) (315) Total cash payments (478,500) (349,315) 531,000 Preliminary cash balance 88,500 96,185 Loan activity Check my wo