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 $ 30,100 $ 41,900 $ 25,900 Cash payments for merchandise purchases 24,000 14,900 15,300 Sales are 75% cash and 25% on credit. Sales in March were $25,900. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $13,900 in cash and $3,900 in loans payable. A minimum cash balance of $13,900 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 12% of sales), office salaries ($6,900 per month), and rent ($4,900 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 $ 30,100 $ 41,900 $ June 25,900 Cash receipts from 0 $ 05 0 Total cash receipts CASTOR, INCORPORATED Cash Budget CASTOR INCORPORATED Schedule of Cash Receipts from Sales April May $ 30,100 $ 41,900 $ June 25,900 Cash receipts from 0 $ 0 Total cash receipts June $ $ CASTOR, INCORPORATED Cash Budget April $ 13,900 $ 36,475 50,375 13,900 May 13,900 $ 38,950 52,850 29,900 43,800 Beginning cash balance Add: Cash receipts from sales Total cash available Less: Cash payments for: Collections on account Merchandise 0 0 12,900 24,000 78 14,900 366 Interest on loan 2,095 1,505 602 15,300 187 1,295 518 6,900 4,900 Sales commissions Shipping Office salaries 838 6,900 4,900 6,900 4,900 Rent 29,100 Total cash payments Preliminary cash balance Additional loan (loan repayment) 50,885 (510) 14,410 29,999 22,851 (8,951) an anal 14,700 (800) AAAA AAA June Beginning cash balance Add: Cash receipts from sales Total cash available Cash Budget April $ 13,900 $ 36,475 50,375 May 13,900 $ 38,950 52,850 13,900 29,900 43,800 0 12,900 24,000 78 14.900 366 Less: Cash payments for: Collections on account Merchandise Interest on loan Sales commissions Shipping Office salaries 15,300 187 1,295 518 2,095 1,505 602 838 6.900 4,900 Rent 29,999 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 6.900 4,900 50,885 (510) 14,410 13,900 6,900 4,900 29,100 14,700 (800) 13,900 22,851 (8,951) 13,900 Loan balance June $ Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month April 3,900 $ 14,410 18,310 May 18,310 (8,951) 9359 (800) (800) $ $
