4. Fast Enterprises is preparing a cash budget for the second quarter of the coming year. The following data have been forecasted: April May Sales Merchandise purchases Operating expenses 160,000 $177,500 117,000 122,400 Payroll Advertising Rent Depreciation 13,600 5,400 2,500 7,500 14,280 5,700 2,500 7,500 End of April balances Cash 30,000 Bank loan payable 26,000 (1) Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $ 140,000 (2) Purchases are all on credit, with 30% paid in the month of purchase and the balance paid in the following month (3) Operating expenses are paid in the month they are incurred. (4) A minimum cash balance of $25,000 is required at the end of each month (5) Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made whenever excess cash is available Show details. (15 Points)