January February March Cash Receipts $519, 405,000 464,000 Cash payments $461,400 347,400 524,000 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 $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.) March 484.000 KAYAK COMPANY Cash Budget For January February, and March January February Beginning cash balance $ 40,000 $ 40,000 Cash receipts 510.000 405.000 Total cash available 550.000 4 45,000 Cash payments 1 481,4001347 400 Interest expense Preliminary cash balance Additional loan loan repayment) Ending cash balance 3 40.000 Loan balance de Loan balance. Beginning of months 30.000 3 Additional loan on repayment Loan balance. End of month s of 0 40.000 0