Exercise 7-17 Preparation of cash budgets (for three periods) P2 Kayak Co. 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 February 400,000 March Cash Payments $475.000 350,000 525,000 450,000 According to a credit agreement with the company's bank, Kayak promises to have a minimum cash balance of $30,000 at cach month-end. In return the bank has agreed that the company can borrow up to $150000 at a monthly interest rate of 1% paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $30,000 on the last day of each month. The company has a cash balance of $30.000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for January. February, and March Check January ending cash balance, $30000 Exercise 7-18 Budgeted cash receipts P2@ Type here to search