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	$ 40,000	$ 50,000	$ 30,000
Cash payments for merchandise purchases	25,250	21,000	21,500

Sales are 50% cash and 50% on credit. Sales in March were $30,000. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $15,000 in cash and $2,500 in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $15,000. 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 $15,000 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 (2% of sales), office salaries ($6,250 per month), and rent ($3,750 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.)

\begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ CASTOR INCORPORATED } \\ \hline \multicolumn{6}{|c|}{ Schedule of Cash Receipts from Sales } \\ \hline \multirow[b]{2}{*}{ Sales } & April & \multicolumn{2}{|r|}{ May } & \multicolumn{2}{|r|}{ June } \\ \hline & 40,000 & $ & 50,000 & $ & 30,000 \\ \hline \multicolumn{6}{|l|}{ Cash receipts from } \\ \hline \multicolumn{6}{|l|}{ Cash sales } \\ \hline \multicolumn{6}{|l|}{ Collections of prior period sales } \\ \hline Total cash receipts & $ & $ & 0 & $ & 0 \\ \hline \multicolumn{6}{|c|}{ CASTOR, INCORPORATED } \\ \hline \multicolumn{6}{|c|}{ Cash Budget } \\ \hline & April & & May & & June \\ \hline \multicolumn{6}{|l|}{ Beginning cash balance } \\ \hline \multicolumn{6}{|l|}{ Add: Cash receipts from sales } \\ \hline Total cash available & 0 & & 0 & & 0 \\ \hline \multicolumn{6}{|l|}{ Less: Cash payments for: } \\ \hline \multicolumn{6}{|l|}{ Merchandise purchases } \\ \hline \multicolumn{6}{|l|}{ Sales commissions } \\ \hline \multicolumn{6}{|l|}{ Shipping } \\ \hline \multicolumn{6}{|l|}{ Rent } \\ \hline \multicolumn{6}{|l|}{ Office salaries } \\ \hline \multicolumn{6}{|l|}{ Interest on loan } \\ \hline & & & & & \\ \hline \multicolumn{6}{|l|}{ Total cash payments } \\ \hline \multicolumn{6}{|l|}{ Preliminary cash balance } \\ \hline \multicolumn{6}{|l|}{ Additional loan (loan repayment) } \\ \hline Ending cash balance & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Loan balance } \\ \hline \multirow[b]{2}{*}{ Loan balance - Beginning of month } & \multicolumn{2}{|c|}{ April } & \multirow[t]{2}{*}{ May } & \multirow[t]{2}{*}{ June } \\ \hline & $ & 2,500 & & \\ \hline \multicolumn{5}{|l|}{ Additional loan (loan repayment) } \\ \hline Loan balance - End of month & & & & \\ \hline \end{tabular}