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7 Castor, 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: Budgeted Sales Cash payments for merchandise April May $30,500 $41,500 June $25,500 eBook 23,200 15,300 15,700 Hint Sales are 75% cash and 25% on credit. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $13,500 in cash, $13,500 in accounts receivable, $11,000 in accounts payable, and a $3,500 balance in loans payable. A minimum cash balance of $13,500 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 2% 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 include sales commissions (5% of sales), shipping (3% of sales), office salaries ($4,500 per month), and rent ($6,500 per month). Prepare a cash budget for each of the months of April, May, and June. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) CASTOR, INC. Cash Budget For April, May, and June April Beginning cash balance $ 13,500 May June Total cash available Cash payments for: Total cash payments Preliminary cash balance May June Ending cash balance Loan balance April Loan balance - Beginning of 3,500 month Additional loan (loan repayment) Loan balance - End of month $