April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) Units 5,000 2.600 4,500 3,500 4,200 Dollars $ 800,000 416,000 720,000 719,000 672,000 All sales are on credit. Recent experience shows that 20% of credit sales is collected in the month of the sale, 50% in the month after the sale. 28% in the second month after the sale, and 2% proves to be uncollectible. The product's purchase price is $110 per unit 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 month's unit sales plus a safety stock of 195 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,368,000 and are paid evenly throughout the year in cash. The company's minimum cash balance at month-end is $130,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $130,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 12% interest rate. On May 31, the loan balance is $32,000, and the company's cash balance is $130,000 Required: 1. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July 2. Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April May June, and July 3. Prepare the merchandise purchases budget for May June, and July. Report calculations in units and then show the dollar amount of purchases for each month 4 Prenesshebechwin the matinn nf rach navments for nu numhaces for line and ta