Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. April $ 30,200 May $ 41,800 June $ 25,800 Budgeted Sales Cash payments for merchandise purchases 23,800 15,000 15,400 Sales are 80% cash and 20% on credit. Sales in March were $25,800. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $13,800 in cash and $3,800 in loans payable. A minimum cash balance of $13,800 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 (3% of sales), office salaries ($6,800 per month), and rent ($4,800 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.) Answer is complete but not entirely correct. June 25,800 $ $ 8,360 20,640 29,000 $ CASTOR INCORPORATED Schedule of Cash Receipts from Sales April May Sales $ 30,200 $ 41,800 Cash receipts from Collections of prior period sales $ 5,160 $ 6,040 Cash sales 24,160 33,440 Total cash receipts $ 29,320 $ 39,480 CASTOR, INCORPORATED Cash Budget April May Beginning cash balance $ 13,800 $ 13,800 Add: Cash receipts from sales 29,320 39,480 Total cash available 43,120 53,280 Less: Cash payments for: Merchandise 23,800 15,000 Sales commissions 3,020 4,180 Shipping 906 1,254 Office salaries 6,800 6,800 4,800 4,800 Interest on loan 38 138 $ June 6,536 29,000 35,536 15,400 2,580 774 6,800 4,800 65 Rent 39,364 32,172 30,419 Total cash payments Preliminary cash balance 3.756 21.108 5.117 Interest on loan 38 138 65 X Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 39,364 3,756 10,044 13,800 32,172 21,108 (7,308) 13,800 30,419 5,117 X 8,683 X 13,800 Loan balance June April 3,800 $ $ Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month May 13,844 (7,308) 6536 10,044 8,683 8,683 $ 13,844