Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Budgeted Sales Cash payments for merchandise purchases April $ 33,600 May $ 42,000 June $ 25,200 21,210 17,640 18,060 Sales are 50% cash and 50% on credit. Sales in March were $25,200. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $12,600 in cash and $2,100 in loans payable. A minimum cash balance of $12,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,600. 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 $12,600 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 ($5,250 per month), and rent ($3,150 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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) CASTOR INCORPORATED Schedule of Cash Receipts from Sales April May June CASTOR INCORPORATED Schedule of Cash Receipts from Sales Sales April May June $ 33,600 $ 42,000 $ 25,200 Cash receipts from Cash sales $ 21,210 $ 17,640 $ 18,060 Collections of prior period sales 12,600 16,800 21,000 Total cash receipts $ 33,810 $ 34,440 $ 39,060 CASTOR, INCORPORATED Cash Budget April May June Beginning cash balance Add: Cash receipts from sales Total cash available Less: Cash payments for: Merchandise purchases 12,600 $ 12,600 $ 12,600 33,810 34,440 39,060 46,410 47,040 51,660 21,200 17,640 18,060 01 Total cash available 46,410 47,040 51,660 Less: Cash payments for: Merchandise purchases Interest on loan Sales commissions Shipping Office salaries Rent Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 21,200 17,640 18,060 21 0 3,360 4,200 2,520 672 840 504 5,250 5,250 5,250 3,150 3,150 3,150 33,653 31,080 29,484 Loan balance April May June 2,100