January February March Cash Receipts $517,000 410,000 465,000 Cash payments $459,400 352,400 522,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 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.) March 465,000 KAYAK COMPANY Cash Budget For January, February, and March January February Beginning cash balance $ 40.000 $ 40,000 Cash receipts 517,000 410,000 Total cash available 557,000 450,000 Cash payments 459,400 352,400 interest expense Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance 522,000 $ 80,000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month