prepare a cash budget for each of the months of April, May, and June.

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 $32,000 20,200 May $ 40,000 16,800 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 ($5,000 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 amour (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Answer is not complete. CASTOR, INC. Cash Budget For April May, and June April May $ 12,000 $ 12,000 S 12,000 16,000 16,000 20,000 40,000 48,000 June Beginning cash balance Collections on account Cash sales 12,279 20,000 12,000 44,279 Total cash available Cash payments for: Merchandise 20.200 16,800 17,200 Answer is not complete. June CASTOR, INC. Cash Budget For April, May, and June April $ 12,000 $ 12,000 16,000 40,000 May 12,000 16,000 20,000 12,279 20,000 12,000 48,000 44,279 Beginning cash balance Collections on account Cash sales Total cash available Cash payments for: Merchandise Interest on bank loan Sales commissions Shipping Office salaries Rent 17,200 0 OOOOO 20,200 20 3,200 640 5,000 3,000 16,800 61 4,000 800 5,000 3,000 2,400 480 5,000 3,000 Total cash payments Preliminary cash balance 32,060 7,940 29,661 18,339 28,080 16,199 Ending cash balance 12,000 12,279 16,199 Loan balance May June $ 6,060 IS 6,060 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month April 2,000 4,060 6,060 $ 6,060 S 6,060