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Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases...

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Accounting

Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three
months follow.
Sales are 50% cash and 50% on credit. Sales in March were $34,800. All credit sales are collected in the month following the sale. The
March 31 balance sheet includes balances of $17,400 in cash and $2,900 in loans payable. A minimum cash balance of $17,400 is
required. Loans are obtained at the end of any month when the preliminary cash balance is below $17,400. Interest is 1% per month
based on the beginning-of-the-month loan balance and is paid at each month-end. If a preliminary cash balance above $17,400 at
month-end exists, loans are repaid from the excess. Expenses are paid in the month incurred and include sales commissions 10% of
sales), shipping (2% of sales), office salaries ( $7,250 per month), and rent ( $4,350 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.)
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