Castor Inc. is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow.

Sales are 50% cash and 50% on credit. Sales in March were $24,000. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $12,000 in cash and $2,000 in loans payable. A minimum cash balance of $12,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If a preliminary cash balance above $12,000 at month-end exists, loans are repaid from the excess. Expenses are paid in the month incurred and include sales commissions (10% of
sales), shipping (2% of sales), office salaries ($5,000 per month), and rent ($3,000 per month). 

(a) Prepare a schedule of cash receipts from sales for April, May, and June. 

(b) Prepare a cash budget for each of April, May, and June (round interest payments to the nearest dollar).

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Budgeted April May June Sales ... $32,000 $40,000 $24,000 Cash payments for merchandise purchases... 20,200 16,800 17,200