Aztec Company sells its product for $$160$ per unit. Its actual and budgeted sales follow.

May $($Actual$)$ June $($Budget$)$ July $($Budget$)$ August $($Budget$)$

Sales units $2,4005,5004,5003,700$

Sales dollars $ $384,000$ $ $880,000$ $ $720,000$ $ $592,000$

All sales are on credit. Collections are as follows: $28\%$ is collected in the month of the sale, and the remaining $72\%$ is collected in the month following the sale. Merchandise purchases cost $$110$ per unit. For those purchases, $60\%$ is paid in the month of purchase and the other $40\%$ is paid in the month following purchase. The company has a policy to maintain an ending monthly inventory of $22\%$ of the next month$$s unit sales. The May $31$ actual inventory level of $1,210$ units is consistent with this policy. Selling and administrative expenses of $$141,000$ per month are paid in cash. The company$$s minimum cash balance at month$-$end is $$120,000.$ Loans are obtained at the end of any month when the preliminary cash balance is below $$120,000.$ Any preliminary cash balance above $$120,000$ is used to repay loans at month$-$end. This loan has a $0\mathrm{.}0\%$ monthly interest rate. On May $31,$ the loan balance is $$48,000,$ 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$$s budgeted merchandise purchases is $$339,020.$

$4.$ 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.