2 loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used: 10 points a. On April 1, the start of the loan period, the cash balance will be $22.200. Accounts receivable on April 1 will total $176,400, of which $151,200 will be collected during April and $20,160 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 three- month period follow: Book Print References Sales (all on account) Merchandise purchases Payroll Lease payments Advertising Equipment purchases Depreciation April May June $ 438,000 $480,000 $261,000 $ 291,000 $183,500 $ 136,500 $ 27, 400 $ 27, 400 $ 26,100 $ 28,600 $ 28,600 $ 28,600 $ 70,800 $ 70, 800 $ 75,460 $ 67,500 $ 19,000 $ 19,000 $ 19,000 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 $180,500. d. in preparing the cash budget, assume that the $69,000 loan will be made in April and repaid in June. Interest on the loan will total 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, 2 loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used: 10 points a. On April 1, the start of the loan period, the cash balance will be $22.200. Accounts receivable on April 1 will total $176,400, of which $151,200 will be collected during April and $20,160 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 three- month period follow: Book Print References Sales (all on account) Merchandise purchases Payroll Lease payments Advertising Equipment purchases Depreciation April May June $ 438,000 $480,000 $261,000 $ 291,000 $183,500 $ 136,500 $ 27, 400 $ 27, 400 $ 26,100 $ 28,600 $ 28,600 $ 28,600 $ 70,800 $ 70, 800 $ 75,460 $ 67,500 $ 19,000 $ 19,000 $ 19,000 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 $180,500. d. in preparing the cash budget, assume that the $69,000 loan will be made in April and repaid in June. Interest on the loan will total 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