Exercise 7-17 (Algo) Preparation of cash budgets (for three periods) Kayak Company budgeted the following cash receipts (excluding cash receipts from loa 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 Receipts Cash payments $ 524,000 405,000 480,000 $ 466,400 347,400 522,000 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to 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 ca balance above $30,000 is used to repay loans at month-end. The company has a cash of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances a repayment amounts (if any) should be indicated with minus sign.) Beginning cash balance Add: Cash receipts Total cash available KAYAK COMPANY Cash Budget January February March $ 30,000 $ 30,000 524,000 554,000