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, 300 23,600 May $41,700 15,100 June $25,700 15,500 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 $13,700 in cash, $13,700 in accounts receivable, $12,700 in accounts payable, and a $3,700 balance in loans payable. A minimum cash balance of $13,700 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 2% per month based on the beginnig-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 (4% of sales), office salaries ($6,700 per month), and rent ($4700 per month). For April, May, and June April May June $ $ 13,700 $ 17,119 Beginning cash balance Cash sales 13,700 22,725 13,700 50,125 31,275 7,575 19,275 10,425 Collections on account Total cash available 52,550 46,819 Cash payments for: Merchandise Sales commissions Shipping Office salaries 23,600 1,515 1,212 15,100 2,085 1,668 15,500 1,285 1,028 4,700 X x 4,700 6,700 4,700 6,700 Rent 6,700 37,727 30,253 29,213 12,324 22,195 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 17,606 13,700 17,119 17,606 Loan balance April May June $ $ 5,076 $ 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 3,700 1,376 $ $ 5,076 $ $