All sales are on credit. Recent experience shows that 26% of credit sales is collected in the month of the sale, 44% in the month after the sale, 28% in the second month after the sale, and 2% proves to be uncollectible. The products purchase price is $110 per unit. All purchases are payable within 10 days. Thus, 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has a policy to maintain an ending monthly inventory of 19% of the next months unit sales plus a safety stock of 60 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,512,000 and are paid evenly throughout the year in cash. The companys minimum cash balance at month-end is $120,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $120,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 11% interest rate. On May 31, the loan balance is $32,500, and the companys cash balance is $120,000. (Round final answers to the nearest whole dollar.)

prepare a cash budget for june and july, including any loan activity and interest expense. Compute the loan balance at the end of each month