Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. castor incorporated is preparing its master budget

Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases...

70.2K

Verified Solution

Question

Accounting

Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three
months follow.
Sales are 50% cash and 50% on credit. Sales in March were $34,800. All credit sales are collected in the month following the sale. The
March 31 balance sheet includes balances of $17,400 in cash and $2,900 in loans payable. A minimum cash balance of $17,400 is
required. Loans are obtained at the end of any month when the preliminary cash balance is below $17,400. 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 $17,400 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 ( $7,250 per month), and rent ( $4,350 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.)
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Answer the following question on COVID-19. Each questions 1 page with source!! 1. Treatment options so far...

Physics
1.2K views

A block with mass 2 kg is attached to an ideal massless spring and undergoes simple...

Basic Math
1.2K views

A biologist measures the lengths of a random sample 45 mature brown trout in a large...

Advance Math
1.2K views

A cylindrical tower has radius R meters and a roof which is a hemisphere. The total...

Biology
1.2K views

Crab digging in the sand A B zooplankton phytoplankton

Algebra
1.2K views

assume that an object tossed vertically upward reaches a height of 148t 16t 2 What...

Accounting
1.2K views

Callie is the 11-year-old daughter and dependent of Mr. and Mrs. Santo. This year, Callie...

Accounting
1.2K views

Give three real world examples of how you could use pivot tables in your life...

Accounting
1.2K views

Steve Madison needs $212800 in 10 years. Click here to view factor tables How much...

Accounting
1.2K views

Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on...

Accounting
1.2K views

PLEASE HELP. I GOT THIS WRONG, PLEASE CORRECT MY MISTAKES. THE RED MEANS IT IS...

Accounting
1.2K views

Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States....