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Artec Company sells its product for $150 per unit, Its actual and budgeted sales follow. Sales valte salen doliars Mar 3,000 3,000 3430,000 Jun har

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Artec Company sells its product for $150 per unit, Its actual and budgeted sales follow. Sales valte salen doliars Mar 3,000 3,000 3430,000 Jun har trisoce 6,000 5000,000 nodset s. $75%,000 (Modget) 4,000 s. 600,000 All sales are on credit. Collections are as follows: 24% is collected in the month of the sale, and the remaining 76% is collected in the month following the sale. Merchandise purchases cost $110 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 meintoin an ending monthly inventory of 18% of the next month's unit sales. The May 31 actual inventory level of 1,080 units is consistent with this policy, Selling and administrative expenses of $102,000 per month are poid in cash. The company's minimum cash balance at month-end is $120,000. Loans are obtained at the end of any month when the preliminary cash bolance is below $120,000. Any preliminary cash balance above $120,000 is used to repay loans at month-end. This loan has a 1,0% monthly interest rote. On May 31, the loan balance is $34,000, and the company's cash balance is $120,000. 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 purchoses is $389.400. 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. eacn montn. Complete this question by entering your answers in the tabs below. Required 2 Required 4 Prepare a schedule of cash receipts from sales for each of the months of June and July. 9 Required 1 Required 2 Required 3 Prepare the merchandise purchases budget for June and July. \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ AZTEC COMPANY } & \\ \hline \multicolumn{1}{|c|}{ Merchandise Purchases Budgets } \\ \hline Budgeted sales units & June & July \\ \hline & 6,000 & 5,000 \\ \hline Next period budgeted sales units & & \\ \hline Ratio of inventory to future sale & & \\ \hline Desired ending inventory units & & \\ \hline & & \\ \hline & & \\ \hline Units to purchase & & \\ \hline Cost per unit & & \\ \hline Cost of merchandise purchases & & \\ \hline \end{tabular} complete this question by entering your answers in the tavs detow. Required 2 Required 3 Prepare a schedule of cash payments for merchandise purchases for June and July. Assume May's budgeted merchan purchases is $389,400. AZTEC COMPANY \begin{tabular}{|l|l|l|l|} \hline \multicolumn{2}{|c|}{ AZTEC COMPANY } \\ \hline Schodule of Cash Payments for Merchandise Purchases \\ \hline Merchandise purchases & & & \\ \hline Cash payments for & & & \\ \hline Current period purchases & & & \\ \hline Prior period purchases & & & \\ \hline Total cash payments for merch, purchases & & \\ \hline \end{tabular}

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