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 $37,200. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $18,600 in cash and $3,100 in loans payable. A minimum cash balance of $18,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $18,600. 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 $18,600 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 ($7,750 per month), and rent ($4,650 per month).

Budgeted Sales Cash payments for merchandise purchases April $ 49,600 31,310 May $ 62,000 26,040 June $ 37,200 26,660 CASTOR INCORPORATED Schedule of Cash Receipts from Sales April May $ 49,600 $ 62,000 $ Sales Cash receipts from Collections of prior period sales Cash sales Total cash receipts Beginning cash balance Total cash available Less: Cash payments for: Total cash payments Preliminary cash balance Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month CASTOR, INCORPORATED Cash Budget April Loan balance April $ 3,100 May May June 37,200 June June