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 January $ 525,000 $ 472,900 Cash payments February March 403,000 472,000 359,900 527,000 a Kayok requires a minimum cash balance of $40,000 at each month-end. The company can borrow money at a monthly interest rate of 1% pald 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 $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 belances and Loan repayment amounts (if any) should be indicated with minus sign.) February March KAYAK COMPANY Cash Budget Jarwary 5 40,000 525.000 565,000 403,000 472,000 350,900 527,000 Beginning cash balance Add Cash receipts Total cathalable 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 472 900 (800) 472.100 432.100 350,900 527,000 5 40.000 Loan balance $ 30.000 $ 0 Loan balance - Beginning of month Additional loan doan repayment) Loan balance end of month