Check my world Exercise 7-31A Merchandising: Cash budget LO P4 Castor, Inc., is preparing its master budget for the quarter ended June 30. Budgeted sales and cash payments for merchandise for the next three months follow Badgeted Sales Canh payments for merchandise April May $32,000 46,000 20,200 16.000 June $ 24,000 17,200 Sales are 50% cash and 50% on credit. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $12,000 in cash. $12,000 in accounts receivable, $11,000 in accounts payable, and a $2,000 balance in loans payable. A minimum cash balance of $12,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning of the month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month Operating expenses are paid in the month incurred and include sales commissions (10% of sales), shipping (2% of sales), office salaries (55,000 per month), and rent ($3,000 per month Prepare a cash budget for each of the months 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) CASTOR, WC Cash Budget For April May, and June April 5 12.000s 16.000 June Beginning cash balance Cash sales May 12.0001 20.000 12 000 MacBook DD * 20 bod 099 F 00 PT C 4 FS F& FS 16 # 3 $ 4 % 5 & 7 ( 9 6 8 0 E R T Y U 0 { [ S DF G H J K L .. . CVB N M Juno Beginning cash balance Cash sales Collections on account Total cash available Cash payments for: For April, May, and June April $ 12,000 s 16,000 12,000 40,000 May 12,000 20,000 16,000 48,000 12,000 20,000 3.200 840 Sales commissions Shipping Office salaries Rent Merchandise 5,000 3,000 20 2001 4,000 800 5,000 3,000 16,800 2.400 480 5,000 3,000 17200 32,040 29,600 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 4,050 12000 28,080 16.199 0 16,199 12,279 Loan balance April 2,000 $ May 6,060 $ 5 June 6,060 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 0 $ 6,080 $ 6,060 S 6,060 MacBook F2 80 F3 000 000 F4 00 F5 F6 DIA FB DD 59 # te A & C 3 4 5 6 7 8 9 R T W