Exercise 7-17 (Algo) Preparation of cash budgets (for three periods) LO P2 March 459,000 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. Cash Receipts cash payments January 5 517,000 $ 466,000 February 404,500 353,500 528,000 Kayak requires a minimum cash balance of $50,000 at each month-end. The company can borrow money 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. 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 (Negative balances and Loon repayment amounts (if any) should be Indicated with minus sign.) March KAYAK COMPANY Cash Budget January February $ 50,000 $ 50,000 517,000 404,500 567,000 454,500 459,000 353,500 528,000 Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for All items excluding interest Interest on loan Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance 466,000 1,000 467,000 353,500 528,000 Loan balance $ 100,000 $ 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month Prey 1 of 1 . Ne