Help Save Kavak 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 January February March Receipts $525,000 44,000 454,000 payments $467,400 346,400 530,000 According to a credit agreement with the company's bank, Kayak promises to have a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $140,000 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 $40,000 on the last day of each month. 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 (if any) should be indicated with minus sign.) KAYAK COMPANY KAYAK COMPANY Cash Budget Cash Budget For January, February, and March January February $ 40,000 525.000 404.000 565.000 March Beginning cash balance Cash receipts Total cash available 346 Prey Next Search March 33.34 points 346,400 530,000 eBook KAYAK COMPANY Cash Budget For January, February, and March January February Beginning cash balance 40,000 Cash receipts 525,000 404,000 Total cash available 565.000 Cash payments 467,400 346,400 Interest expense 800 Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance Loan balance - Beginning of month 80,000 Additional loan (loan repayment) Loan balance - End of month Hint Print References