Aztec Company sells its product for $$180$ per unit. Its actual and budgeted sales follow.

All sales are on credit. Collections are as follows: $30\%$ is collected in the month of the sale, and the remaining $70\%$ 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 $20\%$ of

the next month's unit sales. The May $31$ actual inventory level of $1,200$ units is consistent with this policy. Selling and administrative

expenses of $$110,000$ per month are paid in cash. The company's minimum cash balance at month$-$end is $$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

$$100,000$ is used to repay loans at month$-$end. This loan has a $1\%$ monthly interest rate. On May $31,$ the loan balance is $$25,000,$ 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 $$308,000.$

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.