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. January February March Cash Receipts Cash payments $515,000 401,500 469,000 $455,200 341,700 526,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, 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 $40,000 is used to repay loans at month-end. 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. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Beginning cash balance Add: Cash receipts KAYAK COMPANY Cash Budget January February March $ 40,000 $ 40,000 $ 78,580 515,000 401,500 469,000 Total cash available 555,000 441,500 547,580 Less: Cash payments for All items excluding interest 455,200 341,700 526,000 Interest on loan 800 Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Beginning cash balance. Add: Cash receipts Total cash available KAYAK COMPANY Cash Budget January February March $ 40,000 $ 40,000 $ 78,580 515,000 401,500 469,000 555.000 441,500 547,580 Check my work Less: Cash payments for All items excluding interest 455,200 341,700 526,000 Interest on loan 800 Total cash payments 456,000 341,700 526,000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance-Beginning of month Additional loan (loan repayment) Loan balance, end of month Loan balance $ 80,000 $ 0