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 $ 521,000 409,500 $ 464,500 353,000 529,000 479,000 Kayak requires a minimum cash balance of $50,000 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 $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance of $100,000 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. Answer is complete but not entirely correct. KAYAK COMPANY Beginning cash balance Add: Cash receipts Cash Budget January February March $ 50,000 $ 50,000 $ 50,000 521,000 409,500 479,000 571,000 459,500 529,000 Total cash available Less: Cash payments for All items excluding interest 464,500 353,000 529,000 Interest on loan 1,000 445 0 Total cash payments 465,500 353,445 529,000 Preliminary cash balance 105,500 106,055 Loan activity Additional loan (loan repayment) (55,500) (106,055) x 38,455 Ending cash balance 50,000 $ 50,000 $ 50,000