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 $ 522, 000 $ 464, 400 February 400, 500 342, 900 March 467, 000 526, 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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) KAYAK COMPANY Cash Budget January February March Beginning cash balance $ 40,000 $ 40,000 Add: Cash receipts 522,000 400,500 467,000 Total cash available 562,000 440,500 Less: Cash payments for Interest on loan 800 464,400 342,900 526,000 Total cash payments 465,200 342,900 526,000 Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance