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. Cash Receipts Cash payments January $ 524,000 $ 468, 600 February 404, 000 348, 600 March 473, 000 526,000 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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)Answer is not complete. KAYAK COMPANY Cash Budget January February March Beginning cash balance 50,000 50,000 Add: Cash receipts 524.000 404,000 V 473.000 Total cash available 574.000 454.000 Less: Cash payments for All items excluding interest 468.600 348,600 526,000 Interest on loan (1.000) Total cash payments 467 600 348.600 526.000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance 50,000 50.000 Loan balance Loan balance - Beginning of month $ 100.000 0Less: Cash payments for All items excluding interest 468.600 348,600 526.000 Interest on loan (1,000) + Total cash payments 467 600 348.600 526.000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance 50,000 50,000 V Loan balance Loan balance - Beginning of month 100.000 $ 0 Additional loan (loan repayment) Loan balance, end of month