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 $521,000 411,000 465,000 Cash payments $470,000 360,000 534,000 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 $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.) $ Answer is not complete. KAYAK COMPANY Cash Budget For January, February, and March January February Beginning cash balance 40,000 $ 40,000 Cash receipts 521,000 411,000 Total cash available 561,000 451,000 Cash payments (470,000) (360,000) Interest expense (800) Preliminary cash balance 90,200 Additional loan (loan repayment) Ending cash balance $ 40,000 Loan balance Loan balance - Beginning of month $ 80,000 Additional loan (loan repayment) Loan balance - End of month March 40,000 465,000 505,000 (534,000) $ 0