Exercise 7-17 (Algo) Preparation of cash budgets (for three periods) LO P2

Exercise 7-17 (Algo) Preparation of cash budgets (for three periods) LO P2 Kayak Company budgeted the following cash receipts (excluding cash receipts trom loans received) and cash payments (excluding cash payments tor loan principal and interest payments) tor the first three months ot next year. January February March Cash Receipts 527,000 409,000 476,000 Cash payments s 473,800 355,800 521,000 Kayak requires a minimum cash balance ot $30,000 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 ot the loan for the montn_ Any preliminary cash balance above S30,OOO is used to repay loans at month-end. The company has a cash balance ot $30,000 and a loan balance ot $60,000 at January 1. Prepare monthly cash budgets tor January, February, and March. (Negative balances and Loan repayment amounts (it any) should be indicated with minus sign.) Beginning cash balance Total cash available Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month YAK COMPA Cash Budget Janua s 30,000 oan balance s 60,000 Februa March