Kayak Co. 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 $
525,000 $ 475,000 February 400,000 350,000 March 450,000 525,000
According to a credit agreement with the company’s bank, Kayak
promises to have a minimum cash balance of $30,000 at each
month-end. In return, the bank has agreed that the company can...