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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

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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 $30,000 24,200 May $42,000 14,800 June $26,000 13,500 Sales are 80% cash and 20% on credit. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $14,000 in cash, $14,000 in accounts receivable, $11,000 in accounts payable, and a $4,000 balance in loans payable. A minimum cash balance of $14,000 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 include sales commissions (10% of sales), shipping (4% of sales), office salaries ($5,000 per month), and rent ($7,000 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 CASTOR, INC Cash Budget For April, May, and June April $ 14,000 May June Beginning cash balance Cash sales Collections on account Total cash available Cash payments for Merchandise Sales commissions Shipping Office salaries Rent interest on bank loan Total cash payments Preliminary cash balance Additional loan loan repayment) Interest on bank loan Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance June April 4,000 $ Loan balance - Beginning of month Additional loan (oan repayment) Loan balance - End of month

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