Castor Incorporated is preparing its master budget Budgeted sales and cash payments for merchandise purchases for the next three months follow Budgeted April Sales Cash payments for merchandise purchases $ 64,000 40,400 May $ 80,000 33,600 June $ 48,000 34,400 Sales are 50% cash and 50% on credit. Sales in March were $48,000. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $24,000 in cash and $4,000 in loans payable. A minimum cash balance of $24,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $24,000 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 $24,000 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 ($10,000 per month), and rent ($6,000 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.) Sales Cash receipts from Cash sales Collections on account Total cash receipts Answer is not complete. CASTOR INCORPORATED Schedule of Cash Receipts from Sales April May June $ 64,000 $80,000 $ 48.000 32,000 $ 40,000 $ 24,000 * 24.000 32.000 40.000 56.000 S 72,000 $ 64,000 CASTOR, INCORPORATED Cash Budget CASTOR, INCORPORATED Cash Budget April May June Beginning cash balance $ 24,000 $ 24,000 $ 27,412 Add Cash receipts from sales 56,000 72,000 64,000 Total cash available 80,000 96,000 91,412 Less, Cash payments for Merchandise purchases 40,400 33,600 34,400 Sales commissions 6,400 8,000 3,800x Shipping Office salaries 10,000 10,000 10,000 Rent 6,000 6,000 6,000 Interest on loan 40 148x 0 Total cash payments 62,840 57,748 54,200 Preliminary cash balance Additional loan (loan repayment) Ending cash balance 17,160 38,252 36,212 6,840 (10,840) 0 24,000 27,412 36,212 Loan balance April May June Loan balance - Beginning of month $ 4,000 10,840 $ 0 Additional loan (loan repayment) 6,840 (10,840) Loan balance End of month $ 10,840 $ 0