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 $ 48,000 May $ 60,000 June $ 36,000 30,300 25,200 25,800 Sales are 50% cash and 50% on credit. Sales in March were $36,000. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $18,000 in cash and $3,000 in loans payable. A minimum cash balance of $18,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $18,000. 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 $18,000 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 ($7,500 per month), and rent ($4,500 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 Sales $ 48,000 $ 60,000 $ 36,000 Cash receipts from Collections of prior period sales $ 18,000 $ 24,000 $ 30,000 Cash sales 24,000 30,000 18,000 Total cash receipts $ 42,000 $ 54,000 $ 48,000 CASTOR, INCORPORATED Cash Budget April May June Beginning cash balance $ 18,000 $ 18,000 Add: Cash receipts from sales 42,000 54,000 48,000 Total cash available 60,000 72,000 48,000 Less: Cash payments for: Merchandise purchases 30.300 25.200 < Prev 10 of 10 25.800 Next