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Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow.

Budgeted	April	May	June
Sales	$ 30,100	$ 41,900	$ 25,900
Cash payments for merchandise purchases	24,000	14,900	15,300

Sales are 75% cash and 25% on credit. Sales in March were $25,900. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $13,900 in cash and $3,900 in loans payable. A minimum cash balance of $13,900 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 (2% of sales), office salaries ($6,900 per month), and rent ($4,900 per month). (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.)

CASTOR INCORPORATED Schedule of Cash Receipts from Sales April May $ 30,100 $ 41,900 $ June 25,900 Cash receipts from Total cash receipts $ 0 $ 0 $ 0 CASTOR, INCORPORATED Cash Budget April May June Beginning cash balance 0 0 0 Total cash available Less: Cash payments for: Total cash payments Preliminary cash balance Ending cash balance Loan balance April May June $ 3,900 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month

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