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	$ 519,000	$ 464,700
February	408,000	353,700
March	473,000	535,000

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 a minus sign.)

March KAYAK COMPANY Cash Budget January February $ 40,000 $ 40,000 519,000 408,000 559,000 448,000 473,000 Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for 464,700 353,700 535,000 464,700 353,700 535,000 Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance S 80,000 S 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month