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	$	520,000		$	460,200
February		412,500			352,700
March		471,000			528,000

According to a credit agreement with the companys bank, Kayak promises to have 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.)

KAYAK COMPANY
Cash Budget
For January, February, and March
	January	February	March
Beginning cash balance	$40,000	$40,000
Cash receipts	520,000	412,500	471,000
Total cash available	560,000	452,500
Interest expense	800
Cash payments	(460,200)	(352,700)	(528,000)
Preliminary cash balance
Additional loan (loan repayment)
Ending cash balance
Loan balance
Loan balance - Beginning of month	$80,000		$0
Additional loan (loan repayment)
Loan balance - End of month