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 $515,000 407,500 451,000 Cash payments $456,300 348,800 528,000 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 $160,000 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.) Answer is complete but not entirely correct. $ KAYAK COMPANY Cash Budget For January, February, and March January February Beginning cash balance $ 40,000 $ 40,000 Cash receipts 515,000 407,500 Total cash available 555,000 447,500 Cash payments (456,300) (348,800) Interest expense (800) 221 Preliminary cash balance 97,900 98,921 Additional loan (loan repayment) (57,900) (22,100) Ending cash balance $ 40,000 $ 76,821 Loan balance Loan balance - Beginning of month $ 80,000 $ 22,100 Additional loan (loan repayment) (57,900) (22,100) Loan balance - End of month 22,100 $ 0 March 76,821 451,000 527,821 (528,000) 0 (179) 40,179 40,000 $ $ 0 40,179 40,179 $