Check my work Castor Inc is preparing its master budget for

Check my work 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 31,180 $40,988 $24,900 22,860 15,989 16,300 Cash payments for merchandise Sales are 65% cash and 35% on credt. All credit sales are collected i, the moth folowing the sale The March 31 balance sheet includes balances of $12,900 in cash, $12,900 in accounts recelvable, $11,000 in accounts payable, and a $2,900 balance in loans payable. A minimum cash balance of $12,900 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 pad 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 salesa, office salaries ($3.900 per month, and rent ($5,900 per month) Prepare a cash budget for each of the months of April, May, and June. (Negetive balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole doillar,) Cash Budget For April, May, and June June Beginning cash balance payments for Prev 12 of 13 Next> hp 1702

Solution

Castor Inc

Cash Budget

for April, May and June

April

May

June

Beginning Cash Balance

$    12,900.00

$        12,900.00

$    17,184.38

Add: Collection from Sales and receivables

$    33,115.00

$        37,470.00

$    30,500.00

Total Cash Available

$    46,015.00

$        50,370.00

$    47,684.38

Cash Payments For

Merchandise

$    22,000.00

$        15,900.00

$    16,300.00

Interest on loan

$            58.00

$                82.62

$                   -  

Sales Commission

$      1,555.00

$          2,045.00

$      1,245.00

shipping

$          933.00

$          1,227.00

$          747.00

office salaries

$      3,900.00

$          3,900.00

$      3,900.00

Rent

$      5,900.00

$          5,900.00

$      5,900.00

Total Cash Payments

$    34,346.00

$        29,054.62

$    28,092.00

Preliminary Cash Balance

$    11,669.00

$        21,315.38

$    19,592.38

Loan Taken (Repaid)

$      1,231.00

$        (4,131.00)

$                   -  

  

Ending Cash Balance

$    12,900.00

$        17,184.38

$    19,592.38

Loan Balance

Loan Balance

$      2,900.00

$          4,131.00

$                   -  

Additional Loan (Loan Repayment)

$      1,231.00

$        (4,131.00)

Loan Balance End of Month

$      4,131.00

$                       -  

$                   -  

Working note 1

Cash receipts from sales

April

May

June

Total Sales

$    31,100.00

$        40,900.00

$    24,900.00

$    20,215.00

$        26,585.00

$    16,185.00

$    12,900.00

$        10,885.00

$    14,315.00

(A+B) Total Receipts

$    33,115.00

$        37,470.00

$    30,500.00

Alternative solution assuming Accounts payable are paid in April

Castor Inc

Cash Budget

for April, May and June

April

May

June

Beginning Cash Balance

$    12,900.00

$        12,900.00

$    12,900.00

Add: Collection from Sales and receivables

$    33,115.00

$        37,470.00

$    30,500.00

Total Cash Available

$    46,015.00

$        50,370.00

$    43,400.00

Cash Payments For

Accounts Payable

$    11,000.00

Merchandise

$    22,000.00

$        15,900.00

$    16,300.00

Interest on loan

$            58.00

$              302.62

$          138.71

Sales Commission

$      1,555.00

$          2,045.00

$      1,245.00

shipping

$          933.00

$          1,227.00

$          747.00

office salaries

$      3,900.00

$          3,900.00

$      3,900.00

Rent

$      5,900.00

$          5,900.00

$      5,900.00

Total Cash Payments

$    45,346.00

$        29,274.62

$    28,230.71

Preliminary Cash Balance

$          669.00

$        21,095.38

$    15,169.29

Loan Taken (Repaid)

$    12,231.00

$        (8,195.38)

$    (2,269.29)

Ending Cash Balance

$    12,900.00

$        12,900.00

$    12,900.00

Loan Balance

Loan Balance

$      2,900.00

$        15,131.00

$      6,935.62

Additional Loan (Loan Repayment)

$    12,231.00

$        (8,195.38)

$    (2,269.29)

Loan Balance End of Month

$    15,131.00

$          6,935.62

$     4,666.33

Castor Inc
Cash Budget
for April, May and June
	April	May	June
Beginning Cash Balance	$    12,900.00	$        12,900.00	$    17,184.38
Add: Collection from Sales and receivables	$    33,115.00	$        37,470.00	$    30,500.00
Total Cash Available	$    46,015.00	$        50,370.00	$    47,684.38
Cash Payments For
Merchandise	$    22,000.00	$        15,900.00	$    16,300.00
Interest on loan	$            58.00	$                82.62	$                   -
Sales Commission	$      1,555.00	$          2,045.00	$      1,245.00
shipping	$          933.00	$          1,227.00	$          747.00
office salaries	$      3,900.00	$          3,900.00	$      3,900.00
Rent	$      5,900.00	$          5,900.00	$      5,900.00
Total Cash Payments	$    34,346.00	$        29,054.62	$    28,092.00
Preliminary Cash Balance	$    11,669.00	$        21,315.38	$    19,592.38
Loan Taken (Repaid)	$      1,231.00	$        (4,131.00)	$                   -
Ending Cash Balance	$    12,900.00	$        17,184.38	$    19,592.38
Loan Balance
Loan Balance	$      2,900.00	$          4,131.00	$                   -
Additional Loan (Loan Repayment)	$      1,231.00	$        (4,131.00)
Loan Balance End of Month	$      4,131.00	$                       -	$                   -