Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Sales are 50% cash and 50% on credit. Sales in March were $31,200. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $15,600 in cash and $2,600 in loans payable. A minimum cash balance of $15,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $15,600. 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 $15,600 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 ( $6,500 per month), and rent ($3,900 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. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ CASTOR INCORPORATED } \\ \hline \multicolumn{7}{|c|}{ Schedule of Cash Receipts from Sales } \\ \hline & \multicolumn{2}{|c|}{ April } & \multicolumn{2}{|c|}{ May } & \multicolumn{2}{|c|}{ June } \\ \hline Sales & $ & 41,600 & $ & 52,000 & $ & 31,200 \\ \hline \multicolumn{7}{|l|}{ Cash receipts from } \\ \hline Cash sales & $ & 20,800 & $ & 26,000 & $ & 15,600 \\ \hline Collections of prior period sales & & 15,600 & & 20,800 & & 26,000 \\ \hline Total cash receipts & $ & 36,400 & $ & 46,800 & $ & 41,600 \\ \hline \multicolumn{7}{|c|}{ CASTOR, INCORPORATED } \\ \hline \multicolumn{7}{|c|}{ Cash Budget } \\ \hline & \multicolumn{2}{|c|}{ April } & \multicolumn{2}{|c|}{ May } & \multicolumn{2}{|c|}{ June } \\ \hline Beginning cash balance & $ & 15,600 & $ & 15,600 & $ & 15,963 \\ \hline Add: Cash receipts from sales & & 36,400 & & 46,800 & & 41,600 \\ \hline Total cash available & & 52,000 & & 62,400 & & 57,563 \\ \hline \multicolumn{7}{|l|}{ Less: Cash payments for: } \\ \hline Merchandise purchases & & 26,280 & & 21,840 & & 22,360 \\ \hline Sales commissions & & 4,160 & & 5,200 & & 3,120 \\ \hline Shipping & & 832 & & 1,040 & & 624 \\ \hline Office salaries & & 6,500 & & 6,500 & & 6,500 \\ \hline Rent & & 3,900 & & 3,900 & & 3,900 \\ \hline Interest on loan & & 28 & & 79 & & 0 \\ \hline Total cash payments & & 41,678 & & 38,559 & & 36,504 \\ \hline \multicolumn{7}{|l|}{ Preliminary cash balance } \\ \hline & & & & & & \\ \hline \multicolumn{7}{|l|}{ Ending cash balance } \\ \hline \multicolumn{7}{|c|}{ Loan balance } \\ \hline & \multicolumn{2}{|c|}{ April } & & lay & \multicolumn{2}{|c|}{ June } \\ \hline Loan balance - Beginning of month & $ & 2,600 & & & & \\ \hline \multicolumn{7}{|l|}{ Additional loan (loan repayment) } \\ \hline Loan balance - End of month & & & & & & \\ \hline \end{tabular}