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Axtec Company sells its product for $170 per unit. Its actual and budgeted sales follow. All sales are on credit Collections are as follows: 26%

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Axtec Company sells its product for $170 per unit. Its actual and budgeted sales follow. All sales are on credit Collections are as follows: 26% is collected in the month of the sale, and the remaining 74% 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 pald in the month following purchase. The company has a policy to maintain an ending monthly irventory of 25% of the next month's unit sales. The May 31 actual inventory level of 1,250 units is consistent with this policy. Selling and administrative expenses of $107,000 pet month are paid in cash. The compary's minimum cash balance at month-end is $120,000. Loans are. obtained at the end of any month when the preiminary cash balance is below $120,000. Any preliminary cash balance above $120,000 is used to repay loans at month-end. This loan has a 0.0% monthly interest rate. On May 31 , the loan balance is $44,000, 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 Moy's budgeted merchandise purchases is $368,500. 4. Prepare a cast budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month. Complete this quevtion by entering your answers in the tabs below. Prepare a schedule of cash receipts from sales for each of the months of June and July. 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 $368,500. 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. Prepare the merchandise purchases budget for June and July. 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 $368,500. 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. Prepare a schedule of cash payments for merchandise purchases for June and July. Assume May's budgeted merchandise purchases is $368,500. Prepare a cash budget for June and July, induding any loan activity and interest expense. Compute the loan balance at the end of each month. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your answers to the nearest whole dollars.)

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