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. January February March Cash Receipts $517,000 405,000 465,000 Cash payments $ 460,500 348,500 524,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $30,000 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 $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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget For January, February, and March March Beginning cash balance January February $ 30,000 $ 30,000 517,000 405,000 Cash receipts Total cash available 547,000 435,000 Cash payments (460,500) Interest expense (600) (348,500) (41) 86,459 Preliminary cash balance 85,900 Additional loan (loan repayment) (55,900) 30,000 Ending cash balance $ Loan balance Loan balance - Beginning of month $ 60,000 $ 4,100 $ 0 Additional loan (loan repayment) (55,900) Loan balance - End of month $ 4,100