a. 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 three- month period follow: Sales (all on account) April $ 286,000 May $ 664,000 June $ 315,000 Merchandise purchases Payroll $ 218,000 $ 248,500 $ 161,500 $ 32,800 $ 32,800 $ 22,400 Lease payments Advertising Equipment purchases Depreciation $ 41,000 $ 41,000 $ 41,000 $ 68,600 $ 68,600 $ 52,800 $ 0 $ 0 $ 64,000 $ 34,000 $ 34,000 $ 34,000 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 $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 $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.