Aztec Company sells its product for $150 per unit Its actual and budgeted sales follow. $ Aoral (actual May (actual) June (budgeted) July (budgeted) August (budgeted) Units 5.000 2,800 6,000 5,000 3,700 Dollars 750,000 420.000 900,eee 999,bea 555, eee All sales are on credit. Recent experience shows that 26% of credit sales is collected in the month of the sale, 44% in the month ofter the sale, 29% in the second month after the sale, and 19 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 on ending monthly inventory of 22% of the next month's unit sales plus a safety stock of 105 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1.992,000 and are paid evenly throughout the year in cash. The company's minimum cash balance at month-end is $110,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $110.000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 11% interest rate. On May 31, the loan balance is $44.500, and the company's cash balance is $110,000. 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 budgeted 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. ng your answers in the tabs below: Required 1 Required 2 Required 3 Required 4 Required 5 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. Percent collected in April May June July August Credit sales from April May June July August Total Amount Collected in May June Aprli July August Credit sales from: April May S 750,000 420,000 June 900.000 750,000 July August 555,000 USER Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Required 5 Prepare a schedule that shows the computation of budgeted ending inventories (In units) for April May June, and July. AZTEC COMPANY Budgeted Ending Inventory For April, May, June and July April May Next month's budgeted sales (units) Ratio of inventory to future sales Budgeted "base" ending inventory June July Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Require Required 1 Required 5 Prepare a schedule showing the computation of cash payments for product purchases for June and July. Cash payments on product purchases (for June and July) Percent Pald in- May June From purchases in: May July June July Amount Pald In- Total May June July From purchases in: May June July Required 3 Required 5 > Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance end of each month. (Do not round intermediate calculations. Negative balances and Loan repayment amounts (if any) be indicated with minus sign. Round your final answers to the nearest whole dollar value) AZTEC COMPANY Cash Budget June and July June July Beginning cash balance Total cash available Cash payments for Total cash payment Preliminary cash balance O Erding cash balance Loan balance June July Lan Lalance Beginning of months Additional toan (loan repayment) Loan balance End of month Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Required 5 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. AZTEC COMPANY Merchandlee Purchases Budgets For May June, and July May June July Required units of available merchandise Budgeted purchases (units) Budgeled cost of merchandise purchases