Homework Help is Here – Start Your Trial Now!
Business
Accounting
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

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...
See similar textbooks
icon
Related questions
Question

please help me 

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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Fundamentals Of Financial Management, Concise Edi…
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS