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	$	527,000		$	473,800
February		408,500			355,300
March		473,000			529,000

According to a credit agreement with its bank, Kayak requires a minimum cash balance of $30,000 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 $30,000 on the last day of each month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1.

March KAYAK COMPANY Cash Budget For January, February, and March January February $ 30,000 $ 30,000 527,000 408,500 557,000 438,500 473,800 355,300 Beginning cash balance Cash receipts 473,000 Total cash available Cash payments 529,000 Interest expense 600 Preliminary cash balance Ending cash balance Loan balance Loan balance - Beginning of month $ 60,000 0 Additional loan (loan repayment) Loan balance - End of month