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 $520,000 410,500 468,000 Cash payments $467,900 358,400 525,000 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.) Answer is complete but not entirely correct. KAYAK COMPANY March 63,113 468,000 Cash Budget For January, February, and March January February Beginning cash balance $ 40,000 $ 40,000 $ Cash receipts 520,000 410,500 Total cash available 560,000 450,500 Cash payments 467,900 358,400 Interest expense 800 287 Preliminary cash balance 91.300 91,813 Additional loan (loan repayment) 51,300 X 28,700 X Ending cash balance $ 40.000 $ 63,113 $ 531.113 525,000 0 19,113 X > 0 X 40.000 Loan balance Loan balance - Beginning of month $ 80,000 $ 28,700 $ 0 Additional loan (loan repayment) 51,300 28,700 0 Loan balance - End of month $ 28,700 $ 0 $ 0 x