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 $ 30,000 $ 42,000 $ 26,000 Cash paynents 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). (4) 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 not complete. May June 26,000 5,200 $ 33,600 38,800 CASTOR INCORPORATED Schedule of Cash Receipts from Sales April $ 30,000 $ 42,000 $ Cash receipts from Cash sales $ 6,000 $ 8,400 X $ Collections of prior period sales 14,000 24,000 Total cash receipts 20.000 $ 32,400 $ CASTOR, INCORPORATED Cash Budget April May Beginning cash balance $ 14,000 14,000 $ Add: Cash receipts from sales 20.000 32.400 Total cash available 34,000 46,400 Less: Cash payments for: Merchandise 24,200 14,800 Sales commissions 3,000 4,200 Shipping 1.200 1.680 Rent 5,000 5,000 Office salaries 7.000 7.000 Interest on loan 40 140 June 14,000 38,800 52,800 >> 13,500 2,600 1,040 5,000 7,000 >> > 0 32.820 29.140 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 40,440 (6,440) 7,560 X 23,660 X > 13,580 420 14,000 0 14.000 23,660 Loan balance April June $ 4.000 s Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month May 11,560 420 0 7.560 11.560 $ 0 $ 0