Exercise $7-17($Algo$)$ Preparation of cash budgets $($for three periods$)$ LO P$2$

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 $$50,000$ 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 $$50,000$ is used to repay

loans at month$-$end. 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.

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