Exercise 7-17 (Algo) Preparation of cash budgets (for three periods) Lo P2 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. January February March Cash Receipts Cash payment $17,000 403,000 463,000 8,462,700 348,700 536,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge T, 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 $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1 Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts of any) should be indicated with minus sign) Beginning cash balance Add Cash receipta Total cash avaliable Less: Cash payments for KAYAK COMPANY Cash Budget January February March S 40,000 $ 4000 517,000 400 000 463,000 557,000 443 000 PIRK 101 Nod