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 $ 520,000 409,500 476,000 Cash payments $463,500 353,000 535.000 According to a credit agreement with the company's 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 $140,000 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 March Beginning cash balance Cash receipts Total cash available Cash payments Interest expense Cash Budget For January, February, and March January February $ 40,000 $ 40,000 520,000 409,500 560,000 449,500 (463,500) (353,000) (800)| (243) 05 700 96 257 Preliminary cash balance 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 March Cash Budget For January, February, and March January February Beginning cash balance | $ 40,000 $ 40,000 Cash receipts 520,000| 409,500 Total cash available 560,000 449,500 Cash payments (463,500) (353,000) Interest expense (800) (243) Preliminary cash balance 95,700 96,257 Additional loan (loan repayment) (55,700) 56,257 Ending cash balance $ 40,000 $ 40,000 Loan balance Loan balance - Beginning of month $ 80,000 $ 24,300 Additional loan (loan repayment) (55,700) 56,257 Loan balance - End of month $ 24,300 Electro Company budgets production of 670,000 transmissions in the second quarter and 745,000 transmissions in the third quarter. Each transmission requires 0.8 pounds of a key material. Electro Company aims to end each quarter with an ending inventory of direct materials equal to 20% of next quarter's budgeted materials requirements. Beginning inventor this raw material is 107,200 pounds. Direct materials cost $1.92 per pound. Prepare a direct materials budget for the second quarter. ELECTRO COMPANY Direct Materials Budget Second Quarter Budgeted production (units) Materials requirements per unit Materials needed for production (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Budgeted beginning inventory (lbs.) Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases 670,000 units 0.80 lbs. 536,000 lbs. 66,904 lbs. 602,904 lbs