Please complete and explain

Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Budgeted April May June $ $ $ Sales 41,600 52,000 31, 200 Cash payments for merchandise purchases 26, 260 21,840 22,360 Sales are 50% cash and 50% on credit. Sales in March were $31,200. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $15,600 in cash and $2,600 in loans payable. A minimum cash balance of $15,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $15,600. 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 $15,600 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 ($6,500 per month), and rent ($3,900 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 Sales $ 41,600 $ 52,000 $ 31,200 Cash receipts from Cash sales $ 31,200 $ 39,000X $ 23,400X Collections of prior period 15,600 20,800 26,000 sales Total cash receipts $ 46,800 $ 59,800 $ 49,400 CASTOR, INCORPORATED Cash Budget May April $ 15,600 June $ 15,600X Beginning cash balance $ 15,600 Add: Cash receipts from sales 46,800X 59,800X 49,400X 62,400 75,400 65,000 Total cash available Less: Cash payments for: 26,260 21,840 22,360 Merchandise purchases Sales commissions 5,200 3,120 Shipping 1,040 624 Office salaries 6,500 6,500 Rent 3,900 3,900 Interest on loan Total cash payments 38,480 36,504 Preliminary cash balance Additional loan (loan repayment) Ending cash balance May June Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 4,160 832 6,500 3,900 $ 26 41,678 20,722X (2,600X 18,122 X Loan balance April $ 2,600 (2,600) X