Aztec Company sells its product for $150 per unit. Its actual and budgeted sales follow.

	Units	Dollars
April (actual)	9,000	$1,350,000
May (actual)	2,200	330,000
June (budgeted)	7,500	1,125,000
July (budgeted)	7,500	1,125,000
August (budgeted)	3,900	585,000

Prepare a table that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July.

Percent Collected:

		april	may	june	july	august
credit sales from
april
may
june
july
august

amount collected in:

	total	april	may	june	july	august
credit sales from
april	1,350,000
may	330,000
june	1,125,000
july	1,125,000
august	585,000

Prepare a table 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	June	July
Next months budgeted sales
Ratio of inventory to future sales
Budgeted "base" ending inventory
Safety stock
Budget Ending inventory (units)

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 Merchandise Purchases budgets for May, June, and July

	may	june	july
Required units of available merchandice
Budgeted Purchases (Units)
Budgeted cost of Merchandise purchases

Prepare a table showing the computation of cash payments on product purchases for June and July

Cash Payments on products purchases (for June and July)

--------------------PERCENT PAID IN ----------------------

		May	June	July
From Purchases in:
May
June
July

--------------Amount Paid in------------------

	total	may	june	july
From Purchases
May
June
July

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. (Do not round intermediate calculations.)

Aztec Company Cash Budget June and July

	June	July
Beginning cash balance
Total cash available
cash disbursement
Total cash Disbursement
Preliminary cash balance
Ending cash Balance

Loan Balance

	June	July
Loan Balance-beginning of month
Additional Loan (Loan Payment)
Loan Balance - End of Month