II. Preparation of cash budgets (for three periods)Kasik Company budgeted the fo

II. Preparation of cash budgets (for three periods)Kasik Company budgeted the following cash receipts and cashdisbursements for the first three months of next year.Cash Receipts Cash DisbursementsJanuary.. $500000 $450000February 300000 250000March.. 400000 500000According to a credit agreement with the companys bank Kasikpromises to have a minimum cash balance of $30000 at eachmonth-end. In return the bank has agreed that the company canborrow up to $150000 at an annual interest rate of 12% paid thelast day of each month. The interest is computed based on thebeginning balance of the loan for the month. The company has a cashbalance of $30000 and a loan balance of $60000 at January 1.Prepare monthly cash budgets for each of the first three months ofnext year.