Kayak Company 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	$ 601,000	$ 527,000
February	481,000	444,000
March	531,000	646,000

Kayak requires a minimum cash balance of $46,000 at each month-end. Loans taken to meet this requirement charge 0.7% interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $46,000 is used to repay loans at month-end. The company has a cash balance of $46,000 and a loan balance of $92,000 at January 1.

Prepare monthly cash budgets for January, February, and March.

KAYAK COMPANY
Cash Budget
	January	February	March
Beginning cash balance	$46,000	$46,000
Add: Cash receipts	601,000	481,000	531,000
Total cash available	647,000	527,000
Less: Cash payments for
All items excluding interest
Interest on loan
Total cash payments	0	0	0
Preliminary cash balance
Additional loan (loan repayment)
Ending cash balance
Loan balance
Loan balance - Beginning of month	$92,000
Additional loan (loan repayment)
Loan balance, end of month	$92,000	$0	$0