Exercise 20-31A Merchandising: Cash budget LO P4 Castor, Inc., is preparing its master budjet for the quarter ended June 30. Budgeted sales and cash payments for merchandise for the next three months to follow.

Lesson 9 HW (Graded) He 11 Exercise 20-31A Merchandising: Cash budget LO P4 90 points 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 Budgeted Sales Cash payments for merchandise April $31,600 21.000 May $60,00 16, 4ee June $24,400 16,500 - e o Sales are 65% cash and 35% on credit. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $12,400 in cash $12.400 in accounts receivable, $11.400 in accounts payable, and a $2.400 balance in loans payable. A minimum cash balance of $12,400 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 I' 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 (24 of sales)office salaries (55.400 per month and rent ($3,400 per month) Prepare a cash budget for each of the months of Apri, 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) Refren CASTOR, INC Cash Budget For April May, and June April $ 12,4001 s May June 12.400 Beginning cash balance Cash sales Collections on account Total cash available Cash payments for Merchandise Sales commissions Shipping ME Graw