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 January February March Cash Recent 5515,000 400, 500 478,000 -Cash payments $459,600 345,100 528,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $50,000 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%, 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 balonces and Loon repayment amounts (if any) should be indicated with minus sign.) B Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment oma be indicated with minus sign.) KAYAK COMPANY Cash Budget For January, February, and March January February $ 50,000 March 443.45 Beginning cash balance Sok Total cash available Ek Preliminary cash balance Ending cash balance Loan balance $ 100,000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month