$1$

Prime Products hopes to borrow $$30,000$ on April $1$ and repay it plus interest of $$1,200$ on June $30.$ The following data are available for the months April through June, during which the loan will be used:

a$.$ On April $1.$ the start of the loan period, the cash balance will be $$24\mathrm{.}000.$ Accounts receivable on April $1$ will total $$140,000.$ of which $$120\mathrm{.}000$ will be collected during April and $$16,000$ will be collected during May. The remainder will be uncollectible.

b$.$ The company estimates $30\%$ of a month's sales are collected in the month of sale. $60\%$ in the month following sale, and $8\%$ in the

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second month following sale. The other $2\%$ are bad debts that are never collected. Budgeted sales and expenses for the threemonth period follow:

$\backslash$table$[[,$April,May,June$],[$Sales $($all on account$),$$$300,000,$$$400,000,$$$250,000$