January February March Cash Receipts $ 515,000 400,500 470,000 Cash payments $ 455,200 340, 700 534,000 Kayak requires a minimum cash balance of $40,000 at each month-end. The company can borrow money 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. 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 balances and Loan repayment amounts (if any) should be indicated with minus sign.) March KAYAK COMPANY Cash Budget January $ 40,000 515,000 555,000 February $ 40,000 400,500 440,500 470,000 0 800 Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for Interest on loan All items excluding interest Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance 455,200 456,000 340.700 340,700 534,000 534,000 $ 40,000 40,000 Loan balance $ 0 80,000 $ Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month 0