Exercise 20-17 Preparation of cash budgets (for three perlods) 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. Cash Cash payments $466,50e 349,e0e 528,eee Receipts $523,0ee 485,500 478,00e January February March According to a credit sgreement with the company's bank, Kayak promises to have a minimum cash balance of $50,000 at each month-end. In retum, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1 % , paid 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 esch 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, ond March. (Negative balances and Loan repayment amounts (If any) should be Indicated with minus slgn.) KAYAK COMPANY Cash Budget For January, February, and March January February March Beginning cash balance 50.000 Total cash available Preiminary cash balance Ending cash balance Loan balance Loan balance-Beginning of manth 100.000 Additional loan (loan repayment) Loan balance End of month