Antec Company sells its product for $150 per unit, its actual and budgeted sales follow 4,500 May (actual) June (Budget) July (budget) August (Budget) Sales units 2.000 3,500 3,700 Sales dollars 5.300.000 $ 675,000 525,00 $ 555,000 All sales are on credit. Collections are as follows: 30% is collected in the month of the sale, and the remaining 70% is collected in the month following the sale. Merchandise purchases cost $10 per unit. For those purchases. 60% is paid in the month of purchase and the other 40% is paid in the month following purchase. The company has a policy to maintain an ending monthly inventory of 21% of the next month's unit sales. The May 31 actual inventory level of 945 units is consistent with this policy. Selling and administrative expenses of $103.000 per month are paid in cash. The company's minimum cash balance a month end is $110.000. Loans are obtained at the end of any month when the preliminary cash balance is below $110,000 Any preliminary cash balance above $110.000 is used to repay loans at month-end. This loan has a 0.5% monthly interest rate On May 31, the loan balance is $40,000 and the company's cash balance is $110.000 Required: 1. Prepare a schedule of cash receipts from sales for each of the months of June and July 2. Prepare the merchandise purchases budget for June and July 3. Prepare a schedule of cash payments for merchandise purchases for June and July Assume May's budgeted merchandise purchases is $277750 4. 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 Complete this question by entering your answers in the tabs below. PINY 1 2 Next > Required: 1. Prepare a schedule of cash receipts from sales for each of the months of June and July 2. Prepare the merchandise purchases budget for June and July 3. Prepare a schedule of cash payments for merchandise purchases for June and July. Assume May's budgeted merchandise purchases is $277.750 4. 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 Loo Complete this question by entering your answers in the tabs below. echcel Required 1 Required 2 Required 3 Required 4 Prepare a schedule of cash receipts from sales for each of the months of June and July June 675 000 $ July 525.000 AZTEC COMPANY Schedule of Cash Receipts from Sales May Sales 5 300.000 5 Cash receipts from Collections of current period sales 5 Colection of prior period sales Total cash receipts 5 202 500 5 210.000 112.500 $ 157 500 472 500 530 000 12 Next > Required 1 Required 2 Required 3 Required 4 Prepare the merchandise purchases budget for June and July. July 3,500 AZTEC COMPANY Merchandise Purchases Budgets June Budgeted sales units 4,500 Calculation of desired ending inventory Next period budgeted sales units 675,000 Ratio of inventory to future sale 30% 202,500 207,000 525,000 70% 3,500 3,500 110 $ CA 207.000 $ 110 $ 22.770.000 Add: Beginning inventory units Add: Desired ending inventory Less: Beginning inventory units Less: Desired inventory units CA $ 385.000 HIV VUUT 202.500 104,4031 157,500 Dywys die Add Cash receipts from sales Total cash available Less Cash payments for 312,500 0 0 aces Total cash payments Preliminary cash balance interest expense Ending cash balance 05 0 Loan balance June July Loan balance. Beginning of month Additional loan (loan repayment) Loan balance - End of month