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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
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 $ $ $
Cash payments for merchandise purchases
Sales are cash and on credit. Sales in March were $ All credit sales are collected in the month following the sale. The March balance sheet includes balances of $ in cash and $ in loans payable. A minimum cash balance of $ is required. Loans are obtained at the end of any month when the preliminary cash balance is below $ Interest is per month based on the beginningofthemonth loan balance and is paid at each monthend. If a preliminary cash balance above $ at monthend exists, loans are repaid from the excess. Expenses are paid in the month incurred and include sales commissions of sales shipping of sales office salaries $ per month and rent $ 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.
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