June 30. Budgeted sales and cash payments for merchandise for the next three months follow: Budgeted April May June Sales $ 31,700 $ 40,300 $ 24,300 Cash payments for merchandise 20,800 16,500 16,900 Sales are 60% cash and 40% on credit. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $12,300 in cash, $12,300 in accounts receivable, $11,300 in accounts payable, and a $2,300 balance in loans payable. A minimum cash balance of $12,300 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 2% 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 (5% of sales), shipping (3% of sales), office salaries ($5,300 per month), and rent ($3,300 per month). Prepare a cash budget for each of the months 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.)

From the attached excel file, we have:

a. Ending Cash Balance:

April = $12,300

May = $17,815

June = $21,071

b. Loan Balance End of Month:

April = $2,962

May = $0

June = $0

Explanation:

Note: The opening sentences of the question is as follows:

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                                            April              May             June

Sales                                                 $31,700       $40,300       $24,300

Cash payments for merchandise    20,800          16,500          16,900

Other information is correctly sated in the question:

The explanation of the answers is now given as follows:

Note: See the attached excel file for the cash budget.

Also note that nothing is mentioned about when the accounts payable of $11,300 will paid in cash. Therefore, it is not treated in the cash budget prepared.

In the attached excel file, the following calculations is made:

April additional loan = Minimum required cash balance - April Preliminary cash balance = $12,300 - $11,638 = $662

a. primarily outdoors, responding to emergencies and protecting people.

have a nice day!