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 $521,880 487,500 477,880 Cash payments $467,888 354,388 536, 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 $140.000 at a monthly interest rate of 1% pald 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.) KAYAK COMPANY Cash Budget For January, February, and March January February Beginning cash balance 40,000 $ 40,000 $ Cash receipts 521.000 407,500 Total cash available 561,000 447,500 Cash payments 487.800 354,300 Interest expense 800 256 Preliminary cash balance 92.400 Additional loan (loan repayment) 52.400 Ending cash balance S 40,000 Loan balance March 76,379 477,000 553,379 536,000 0 $ $ 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 80,000 52.400