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Please followeaxact chart layout Castor, Inc. is preparing its master budget for the quarter ended June 30. Budgeted sales and cash payments for merchandise for
Please followeaxact chart layout
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: June May $30,400 $41.600 $25.600 Budgeted sales Budgeted cash payments for merchandise 23.400 15,200 5.600 Sales are 75% cash and 25% on credit. All credit sales are collected in the month following the sale. The March 30 balance sheet includes balances of $13.600 in cash, $13,600 in accounts receivable. $11.000 in accounts payable, and a $3,600 balance in loans payable. A minimum cash balance of S13,600 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 consist of sales commissions (10% of sales), shipping (2% of sales), office salaries (S4,600 per month) and rent ($6.600 per month). Prepare a cash budget for each of the months of April, May. and June. CASTOR, INC Cash Budget For April, May, and June April May June s 13,600 S 13600 Beginning cash balance Cash sales Total cash available Cash disbursements Total cash disbursements Preliminary cash balance Ending cash balance Loan balance April May June S 3600 Loan balance Beginning of month Additional loan (loan repayment) Loan balance End of month
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