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 $ 515,000 406,500 464,000 Cash payments $ 461,800 353,300 526,000 Kayak requires a minimum cash balance of $30,000 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 $30,000 is used to repay loans at month-end. The company has a cash balance of $30,000 and a loan balance of $60,000 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 $ 30,000 February March Beginning cash balance Total cash available Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance 60,000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month Answer is not complete. KAYAK COMPANY Cash Budget January February $ 30,000 $ 30,000 515,000 406,500 545,000 436,500 $ Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for Interest on loan March 30,000 X 464,000 494,000 (600) (74) 0 (600) 82,600 (74) 83,126 0 32,000 Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance 62,000 53,126 X $ 30,000 52,600 $ 30,000 Loan balance $ 60,000 52,600 $ 7,400 $ $ 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month 7,400 53,126 $ 0 $ 62,000