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 14,000 20,800 8,400 29,200 $ May June Schedule of Cash Receipts from Sales April $ 30,000 $ 42,000 Cash receipts from Cash sales 24,000 S 33,600 Collections of prior period sales 6,000 Total cash receipts 38,000 $ 39,600 CASTOR, INCORPORATED Cash Budget April Beginning cash balance $ 14,000 $ 14,000 Add: Cash receipts from sales 38,000 39,600 Total cash available 52,000 53,600 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 64 $ 14,416 X 29,200 43,616 OOOO 13,500 2,600 1,040 5,000 7,000 000 0 40.440 32.744 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 29,140 14,476 11,560 2.440 X 20,856 (6.440) 14,416 0 14,000 14.476 Loan balance April May June $ 4,000 S 6,440 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 2,440 & 0 (6.440) 0 6,440 0