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 $527,000 405,000 463, eee Cash payments $468,300 346,300 530, eee 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.) Cash Budget For January, February, and March January February Beginning cash balance $ 40,000 $ 40,000 $ Cash receipts 527,000 405,000 Total cash available 567,000 445,000 Cash payments 468,300 346,300 Interest expense 0 8 00 (221) Preliminary cash balance 97.900 98,479 Additional loan (loan repayment) 0 (57,900) (21,800) Ending cash balance $ 40,000 S 76,682 $ Loan balance Loan balance - Beginning of month $ 80,000 $ 22,100 $ Additional loan (loan repayment) (57,900) (21,800) Loan balance - End of month $ 22,100S 0 S March 76,682 % 463,000 539,682 530,000 00 9,682 30,318 40,000 0 30,318 30,318