Exercise 20-17 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. Cheh Cash Receipts payment January $517.000 5459,400 February 205,500 347,900 March 453,000 535,000 According to a credit agreement with the company's bank, Kayak promises to have a minimum cash balance of $50,000 at each month-end. In return, the bank has agreed that the company can borrow up to $160,000 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 $50,000 on the last day of each month. 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 Cash Budget For January, February, and March January February 50,000 March Beginning cash balance Total cash available Preliminary cash balance Prepare monthly cash budgets for January, February, and March (Negative balances and Loa be indicated with minus slgn.) + KAYAK COMPANY Cash Budget For January, February, and March January February $ 50,000 March Beginning cash balance Total cash available Preliminary cash balance Ending cash balance Loan balance $ 100,000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month