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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 Sales Cash payments for merchandise purchases (Negative Dalances ar nearest whole dollar) April $ 60,800 38,380 Sales are 50% cash and 50% on credit. Sales in March were $45.600 All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $22.800 in cash and $3,800 in loans payable. A minimum cash balance of $22.800 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $22.800 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 $22,800 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 ($9,500 per month), and rent ($5.700 per month) Cash receipts from (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) Total cash receipts May $ 76,000 31,920 CASTOR INCORPORATED Schedule of Cash Receipts from Sales April S June $ 45,600 32,680 60,800 S CASTOR, INCORPORATED May 78,000 $ June 45,600

Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Budgeted Sales Cash payments for merchandise purchases (Negative Dalances ar nearest whole dollar) April $ 60,800 38,380 Sales are 50% cash and 50% on credit. Sales in March were $45.600 All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $22.800 in cash and $3,800 in loans payable. A minimum cash balance of $22.800 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $22.800 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 $22,800 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 ($9,500 per month), and rent ($5.700 per month) Cash receipts from (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) Total cash receipts May $ 76,000 31,920 CASTOR INCORPORATED Schedule of Cash Receipts from Sales April S June $ 45,600 32,680 60,800 S CASTOR, INCORPORATED May 78,000 $ June 45,600

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 72P: Cash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for...
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Beginning cash balance Total cash available Less: Cash payments for Total cash payments Preliminary cash balance Ending cash balance Loan balance- Beginning of month Additional loan (loan repayment) Loan balance-End of month Cash Budget April Loan balance April $ 3,800 May May June June
Transcribed Image Text:Beginning cash balance Total cash available Less: Cash payments for Total cash payments Preliminary cash balance Ending cash balance Loan balance- Beginning of month Additional loan (loan repayment) Loan balance-End of month Cash Budget April Loan balance April $ 3,800 May May June June
Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Budgeted Sales Cash payments for merchandise purchases (Negative Dalances ar nearest whole dollar) April $ 60,800 38,380 Sales are 50% cash and 50% on credit. Sales in March were $45.600 All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $22.800 in cash and $3,800 in loans payable. A minimum cash balance of $22.800 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $22.800 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 $22,800 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 ($9,500 per month), and rent ($5.700 per month) Cash receipts from (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) Total cash receipts May $ 76,000 31,920 CASTOR INCORPORATED Schedule of Cash Receipts from Sales April S June $ 45,600 32,680 60,800 S CASTOR, INCORPORATED May 78,000 $ June 45,600
Transcribed Image Text:Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Budgeted Sales Cash payments for merchandise purchases (Negative Dalances ar nearest whole dollar) April $ 60,800 38,380 Sales are 50% cash and 50% on credit. Sales in March were $45.600 All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $22.800 in cash and $3,800 in loans payable. A minimum cash balance of $22.800 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $22.800 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 $22,800 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 ($9,500 per month), and rent ($5.700 per month) Cash receipts from (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) Total cash receipts May $ 76,000 31,920 CASTOR INCORPORATED Schedule of Cash Receipts from Sales April S June $ 45,600 32,680 60,800 S CASTOR, INCORPORATED May 78,000 $ June 45,600
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