Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. April $ 30,000 May $ 42,000 June $ 26,000 Budgeted Sales Cash payments for merchandise purchases 24,200 14,800 13,500 Sales are 80% cash and 20% on credit. Sales in March were $26,000. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $14,000 in cash and $4,000 in loans payable. A minimum cash balance of $14,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,000. 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 $12,000 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 (4% of sales), office salaries ($7,000 per month), and rent ($5,000 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.) CASTOR INCORPORATED Schedule of Cash Receipts from Sales April May $ 30,000 $ 42,000 June $ 26,000 Cash receipts from Total cash receipts $ 0 $ 0 $ 0 CASTOR, INCORPORATED Cash Budget April May June Beginning cash balance Total cash available 0 0 0 Less: Cash payments for: Total cash payments Preliminary cash balance Ending cash balance Loan balance April May June $ 4,000 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month