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	$ 520,000	$ 467,900
February	404,000	351,900
March	460,000	521,000

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.) March KAYAK COMPANY Cash Budget January February $ 40,000 $ 40,000 520,000 404,000 560,000 444,000 Beginning cash balance Add: Cash receipts 460,000 Total cash available Less: Cash payments for Interest on loan 800 800 0 0 Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance $ 80,000 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month