Exercise $20-17($Algo$)$ Preparation of cash budgets $($for three periods$)$ LO P$2$

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 $ $520,000$ $ $465,700$

February $406,000351,700$

March $473,000529,000$

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.$)$