Exercise $7-17(Algo)$ Preparation $of$ cash budgets $(for$ three periods$)LOP2$

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.

Kayak requires a minimum cash balance $of$ $$50,000at$ 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 $$50,000is$ used $to$ repay loans $at$ month$-$end. The company has a cash balance $of$ $$50,000$ and a loan balance $of$

$$100,000at$ January $1.$

Prepare monthly cash budgets for January, February, and March.

Note: Negative balances and Loan repayment amounts $(if$ any$)$ should $be$ indicated with minus sign.