Aztec Company sells its product for $150 per unit. Its actual and budgeted sales follow. April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) Units 4,000 1.800 5.500 4,500 3.700 Dollars $600,000 270.000 825.000 24.000 555.000 All sales are on credit. Recent experience shows that 24% of credit sales is collected in the month of the sale, 46% in the month after the sale, 25% in the second month after the sale, and 5% proves to be uncollectible. The product's purchase price is $110 per unit. 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has a policy to maintain an ending monthly inventory of 22% of the next month's unit sales plus a safety stock of 130 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,968,000 and are paid evenly throughout the year in cash. The company's minimum cash balance at month-end is $140,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $140,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 13% interest rate. On May 31, the loan balance is $47,000, and the company's cash balance is $140,000 Required: 1. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July 2. Prepare a schedule that shows the computation of budheted ending inventories (in units) for April May June, and July 3. Prepare the merchandise purchases budget for May, June, and July. Report calculations in units and then show the dollar amount of purchases for each month 4. Prepare a schedule showing the computation of cash payments for product purchases for June and July 5. 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. Renuired Rand Rere Read 4 Reuired 5 June July = 140,000 I OTT IT Beginning cash balance Cash receipts from customers Total cash available Cash payments for: Purchases Selling and administrative expens Interest expense TO 11 1. I TIL 0 0 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance TOO - $ $ Loan balance June July Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month