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	$	521,000		$	462,300
February		402,000			343,300
March		455,000			524,000

According to a credit agreement with its bank, Kayak requires a minimum cash balance of $50,000 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 $50,000 on the last day of each month. The company has a cash balance of $50,000 and a loan balance of $100,000 at January 1. Prepare monthly cash budgets for January, February, and March.

March Beginning cash balance 455,000 January February $ 50,000 $ 50,000 521,000 402,000 571,000 452,000 (462,300) 343,300 1,000 Cash receipts Total cash available Cash payments Interest expense Preliminary cash balance Additional loan (loan repayment) 524,000 Ending cash balance Loan balance $ 100,000 $ 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month