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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 $ 32,000 20,200 May $ 40,000 16,800 June $ 24,000 17,200 Sales are 50% cash and 50% on credit. All credit sales are collected in the month following the sale. The March 31 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 include soles commissions (10% of sales), shipping (2% of sales) office salaries ($5,000 per month), and rent ($3,000 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 $ 12,000 $ 16,000 May Beginning cash balance Cash sales Collections on account Total cash available 12,000 $ 20,000 16.000 48.000 June 12.000 12.000 20.000 44,000 Cash payments for Sales commissions Shipping Office salaries Rent 3,200 540 5,000 3,000 4,000 800 5,000 3,0001 17,200 480 5,000 3,000 Cash Budget For April, May, and June April May June $ $ 12,000 $ 12,000 12,000 16,000 Beginning cash balance Cash sales Collections on account Total cash available 20,000 16,000 48,000 12,000 20,000 44,000 3,200 4,000 800 Cash payments for: Sales commissions Shipping Office salaries Rent 640 17,200 X 480 5,000 3,000 5,000 3,000 5,000 3,000 Interest on bank loan 170 X 102 x 11,840 12,970 25,782 Total cash payments Preliminary cash balance Ending cash balance Loan balance May June April 2,000 $ Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month

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