Aztec Company sells its product for $150 per unit. Its actual and budgeted sales follow 3,500 $ 525,000 May (actual) June (Budget) July (Budget) Sales units August (Budget) 2,400 5.000 Sales dollars 4,800 5 360,000 $750,000 $ 600.000 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 24% or 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 $165,000 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 10% monthly interest rate On May 31, the loan balance is $32,000, 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 3. Prepare a schedule of cash payments for merchandise purchases for June and July. Assume hay's budgeted merchandise purchases is $332.640. 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. Required Required 2 Required Required 4 Prepare a schedule of cash receipts from sales for each of the months of June and July July AZTEC COMPANY Schedule of Cash Receipts from Sales May Sales 360.0005 Cash receipts from Collections of current period sales Collections of prior porlod sales Total cash receipts June 750.000 600.000