Cambridge, Inc. is preparing its master budget for the quarter ended June 30. Budgeted sales and cash payments for merchandise for the next three months follow:

Sales are 60% cash and 40% on credit. All credit sales are collected in the month following the sale. The March 30 balance sheet includes balances of $12,000 in cash, $12,000 in accounts receivable, $11,000 in accounts payable, and a $2,000 balance in loans payable. A minimum cash balance of $12,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning of the month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), shipping (3% of sales), and office salaries ($3,000 per month) and rent ($5,000 per month). Prepare a cash budget for each of the months of April, May, and June (round all dollar amounts to the nearest wholedollar).

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ApriMayJune $32,000 $40,000 $24,000 merchandise20,200 16800 7.200 Budgeted sales Budgeted cash payments for