2) 1.

The president of the retailer Prime Products has just approached the company's bank with a reque-t for a 363,000,90-day ioan. The purpone of the loan is to assist the company in acquiring imventories. Because the company has had some difficulty in paying off its loars in the post, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following dath are available for the months April through June, duting which the loan will be used. 3. On April 1, the start of the loan period, the cash balance will be $42.000. Accounts receivable on April 1 will total $168,000, of which $144,000 will be collected during April and $19,200 will be collected during May. The remainder will be uncollectible b. Past experience shows that 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the threemonth period follow: c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $161,000. d. In preparing the cash budget, assume that the $63,000 loan will be made in April and repaid in June. Interest on the loan will total 5980 Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total. 2. Prepare a cash budget, by month and in total, for the three-month period. Complete this question by entering your answers in the tabs below. Calculate the expected cash collections for April, May, and June, and for the three months in total. c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in Aprili, total $161,000 d. In preparing the cash budget, assume that the $63.000 loan will be made in April and repaid in June. Interest on the loan will tota $980. Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total. 2. Prepare a cash budget, by month and in total, for the three-month period: Complete this question by entering your answers in the tabs below. Calculate the expected cash collections for April, May, and June, and for the three months in total. Prepare a cash budget, by month and in total, for the three-month period. (Cash deficiency, repayments and interest should be