Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Budgeted April May June Sales $ 31,300 $ 40,700 $ 24,700 Cash payments for merchandise purchases 21,600 16,100 16,500 Sales are 65% cash and 35% on credit. Sales in March were $24.700. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $12,700 in cash and $2,700 in loans payable. A minimum cash balance of $12,700 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,000. Interest is 2% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If a preliminary cash balance above $12,000 at month-end exists, loans are repaid from the excess. Expenses are paid in the month incurred and include sales commissions (5% of sales), shipping (2% of sales), office salaries ($5.700 per month), and rent ($3.700 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.) June 24,700 16,055 14,245 30,300 5 CASTOR INCORPORATED Schedule of Cash Receipts from Sales April May $ 31,300 $ 40,700 $ Cash receipts from Cash sales $ 20,345 $ 26,455 $ Collections of prior period sales 8,645 10,955 Total cash receipts $ 28,990 $ 37,410 $ CASTOR, INCORPORATED Cash Budget April Beginning cash balance $ 12,700 s 12,700 $ Add: Cash receipts from sales 28,990 37,410 Total cash available 41,690 50,110 Less: Cash payments for: Merchandise 21,600 16,100 Sales commissions 1,565 2,035 Shipping 814 Office salaries 5 tao 5,700 Rent 3,700 3,700 54 Interest on loan 139 May June 14,667 30,300 44,967 16,500 1.235 626 494 5,700 3,700 0 33,245 28,488 27,629 Total cash payments Total cash payments 33,245 27,629 8,445 17,338 Preliminary cash balance Additional loan (loan repayment) Ending cash balance 28,488 21,622 (6,955) 14,667 4,255 12.700 17.338 Loan balance April May June EA $ 2,700 $ 6,955 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 4,255 (6,955) $ 6,955 0 S