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Sales are 65% cash and 35% on credit. All credit sales are collected in the...

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Accounting

Sales are 65% cash and 35% on credit. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $12,700 in cash, $12,700 in accounts receivable, $11,000 in accounts payable, and a $2,700 balance in loans payable. A minimum cash balance of $12,700 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 paid 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 (2% of sales), office salaries ($3,700 per month), and rent ($5,700 per month).

April May June

Sales........................................... 31,300 40,700 24,700

Cash payments for merchandise 21,600 16,100 16,500

Prepare a cash budget for each of the months 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.)

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