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Castor Incorporated is preparing its mastet budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Budgeted Sales Cash paynents for nerchandise purchases April $ 52,800 May $ 66,000 June $ 39,600 33,330 27,720 28,380 Sales are 50% cash and 50% on credit. Sales in March were $39,600. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $19,800 in cash and $3,300 in loans payable. A minimum cash balance of $19,800 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $19,800. 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 $19,800 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 ($8,250 per month), and rent ($4,950 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 June 52,800 $ 66.000 $ 39,600 Cash receipts trom Total cash receipts CASTOR, INCORPORATED Cash Budget April May June Beginning cash balance Total cash avalable

Castor Incorporated is preparing its mastet budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Budgeted Sales Cash paynents for nerchandise purchases April $ 52,800 May $ 66,000 June $ 39,600 33,330 27,720 28,380 Sales are 50% cash and 50% on credit. Sales in March were $39,600. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $19,800 in cash and $3,300 in loans payable. A minimum cash balance of $19,800 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $19,800. 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 $19,800 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 ($8,250 per month), and rent ($4,950 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 June 52,800 $ 66.000 $ 39,600 Cash receipts trom Total cash receipts CASTOR, INCORPORATED Cash Budget April May June Beginning cash balance Total cash avalable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cash receipts from Total cash receipts CASTOR, INCORPORATED Cash Budget April May June Beginning cash'balance Total cash available Less: Cash payments for: Total cash payments Preliminary cash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month 3,300 Additional loan (loan repayment) Loan balance - End of month
Transcribed Image Text:Cash receipts from Total cash receipts CASTOR, INCORPORATED Cash Budget April May June Beginning cash'balance Total cash available Less: Cash payments for: Total cash payments Preliminary cash balance Ending cash balance Loan balance April May June Loan balance - Beginning of month 3,300 Additional loan (loan repayment) Loan balance - End of month
Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Budgeted Sales Cash paynents for merchandise purchases April $ 52,800 May $ 66,000 June $ 39,600 33,330 27,720 28, 380 Sales are 50% cash and 50% on credit. Sales in March were $39,600. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $19,800 in cash and $3,300 in loans payable., A minimum cash balance of $19,800 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $19,800. 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 $19,800 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 ($8,250 per month), and rent ($4.950 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 June 52,800 $ 06,000 $ 39,600 Cash receipts from Total cash receipts CASTOR, INCORPORATED Cash Budget April May June Beginning cash balance Total cash available
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 paynents for merchandise purchases April $ 52,800 May $ 66,000 June $ 39,600 33,330 27,720 28, 380 Sales are 50% cash and 50% on credit. Sales in March were $39,600. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $19,800 in cash and $3,300 in loans payable., A minimum cash balance of $19,800 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $19,800. 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 $19,800 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 ($8,250 per month), and rent ($4.950 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 June 52,800 $ 06,000 $ 39,600 Cash receipts from Total cash receipts CASTOR, INCORPORATED Cash Budget April May June Beginning cash balance Total cash available
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