a. On April 1, the start of the loan period, the cash balance will be $18,800. Accounts receivable on April 1 will total $165,200, of which $141,600 will be collected during April and $18,880 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: April $ 334,000 $510,000 343,000 $ 266,000 $ 200,000 $ 176,500 $ 19,000 19,000 $ 18,800 $ 27,800 27,800 27,800 $ 70,400 70,400 $ 57,890 May June Sales (all on account) erchandise purchases Payrol.1 Lease payments Advertising Equipment purchases Depreciation 105,500 $ 23,000 23,000 23,000 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 $149,000 d. In preparing the cash budget, assume that the $83,000 loan will be made in April and repaid in June. Interest on the loan will total $1,180 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