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	$	522,000		$	464,400
February		405,500			347,900
March		481,000			523,000

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 $160,000 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 40,000 405,500 445,500 (347,900) Beginning cash balance Cash receipts Total cash available Cash payments Interest expense Preliminary cash balance Additional loan (loan repayment) Ending cash balance 40,000$ 481,000 522,000 562,000 (464,400) (523,000) 40,000 40,000 Loan balance 80,000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month