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. Cash Receipts Cash payments January February March $518,000 $460,400 401,000 459,000 343,400 534,000 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.) Beginning cash balance Cash receipts Total cash available Cash payments Interest expense Preliminary cash balance Answer is not complete. KAYAK COMPANY Cash Budget For January, February, and March Additional loan (loan repayment) January $ February 40,000 $ 40,000 March 518,000 401,000 459,000 558,000 441,000 460,400 400 97,200 (41,000)