Kayak requires a minimum cash balance of $40,000 at each month-end. The company can borrow money at a monthly interest rate of 1%, paid on the last day of each month. 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.) Beginning cash balance Add: Cash receipts KAYAK COMPANY Cash Budget January February March $ 40,000 $ 40,000 525,000 412,000 473,000 565,000 452,000 Total cash available Less: Cash payments for All items excluding interest 466,300 353,300 533,000 Interest on loan 800 221 0 Total cash payments 467,100 353,521 533,000 Preliminary cash balance 97,900 98,682 19,969 Loan activity Additional loan (loan repayment) Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) (58,633) (18,079) $ 40,000 69 59,969 40,000 Loan balance $ 80,000 $ (58,633) 22,100 $ 0 59,969 Loan balance, end of month $ 22,100 $ 0 $ 22,653