Check my work 12 Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. 10 points April $ 31, 100 May $ 40, 900 Budgeted Sales Cash payments for merchandise purchases June $ 24,900 22,000 15, 900 16,300 eBook Sales are 65% cash and 35% on credit. Sales in March were $24,900. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $12,900 in cash and $2,900 in loans payable. A minimum cash balance of $12,900 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,000. Interest is 2% 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 (5% of sales), shipping (3% of sales), office salaries ($5,900 per month), and rent ($3,900 per month). Hint Print (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.) References June 24.900 CASTOR INCORPORATED Schedule of Cash Receipts from Sales April May Sales $ 31,100 $ 40.900 $ Cash receipts from Cash sales $ 20,215 $ 26,585 $ Collections of prior period sales 8,715 10,885 Total cash receipts $ 28,930 $ 37,470 $ CASTOR, INCORPORATED 16,185 14,315 30,500 12 June 24,900 10 points 16,185 14,315 30,500 eBook Schedule of Cash Receipts from Sales April May Sales $ 31,100 $ 40,900 $ Cash receipts from Cash sales $ 20,215 $ 26.585 $ Collections of prior period sales 8,715 10,885 Total cash receipts $ 28,930 $ 37,470 $ CASTOR, INCORPORATED Cash Budget April May Beginning cash balance $ 12,900 $ 12,900 $ Add: Cash receipts from sales 25,185 37,470 Total cash available 38,085 50,370 Less: Cash payments for: Merchandise 22,000 15,900 Sales commissions 1,555 2,045 Shipping 933 1,227 Office salaries 5,900 5,900 Rent 3,900 3,900 June 100 Hint 12,9001 30,500 43,400 Print References 16,300 1,245 747 5,900 3,900 58 83 34,346 Interest on loan Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 11,669 1,231 12,900 29,055 21,315 (4,131) 17,184 28,092 19,592 0 19,5921 June May 4,131 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Loan balance April $ 2,900 $ 1,231 $ 4,131 0 (4,131) 0 $ 0