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

$\backslash$table$[[$Males units,Mctual$),$June $($Budget$),$July $($Budget$),$August $($Budget$)],[$Sales dollars,$$416,000,5,500,4,500,4,400],[,$$$880,000,$$$720,000,$$$704,000,]]$

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 $$110$ per unit. For those purchases, $60\%$ is paid in the month of purchase and the other $40\%$ is paid in the month following purchase. The company has a policy to maintain an ending monthly inventory of $18\%$ of the next month's unit sales. The May $31$ actual inventory level of $990$ units is consistent with this policy. Selling and administrative expenses of $$133,000$ per month are paid in cash. The company's minimum cash balance at month$-$end is $$100,000.$ Loans are obtained at the end of any month when the preliminary cash balance is below $$100,000.$ Any preliminary cash balance above $$100,000$ is used to repay loans at month$-$end. This loan has a $1\mathrm{.}5\%$ monthly interest rate. On May $31,$ the loan balance is $$47,000,$ and the company's cash balance is $$100,000.$

Required:

Prepare a schedule of cash receipts from sales for each of the months of June and July.

Prepare the merchandise purchases budget for June and July.

Prepare a schedule of cash payments for merchandise purchases for June and July. Assume May's budgeted merchandise purchases is $$343,420.$

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.

Required $1$

Required $4$

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. $($Negative balances and Loan repayment amounts $($if any$)$ should be indicated with minus sign. Round your answers to the nearest whole dollars.$)$

$\backslash$table$[[$AZTEC COMPANY$],[$Cash Budget$],[$June and July$],[,$June,July$],[$Beginning cash balance,$$,100,000,$$$,100,000],[$Add Cash receipts from sales,,$536,640,,838,400],[$Total cash available,,$636,640,,938,400],[$Less: Cash payments for:,,$-,,],[$Merchandise purchases,,$488,488,,529,892],[$Selling and administrative expenses,,$133,000,,133,000],[$Interest expense,,$705,,],[$Total cash payments,,$622,193,,662,892],[$Preliminary cash balance,,,,$142],[$Additional loan $($loan repayment$),,,,],[$Ending cash balance,$$,0,$$$,0],[$Loan balance$],[,$June,,July$],[$Loan balance $-$ Beginning of month,$$,47,000,,],[$Additional loan $($loan repayment$)],[$Loan balance $-$ End of month,$$,47,000,,]]$