Aztec Company sells its product for $150 per unit. Its actual and budgeted sales follow. May (Actual) June (Budget) July (Budget) August (Budget) Sales units 2,400 5,500 4,500 3,800 Sales dollars 1360,000 $ 825,000 $ 675,000 $ 570,000 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 19% of the next month's unit sales. The May 31 actual inventory level of 1,045 units is consistent with this policy. Selling and administrative expenses of $107.000 per month are paid in cash. The company's minimum cash balance at month-end is $130,000. Loans are obtained at the end of any month when the preliminary cash balance is below $130,000. Any preliminary cash balance above $130,000 is used to repay loans at month-end. This loan has a 0.5% monthly interest rate. On May 31, the loan balance is $41,000, and the company's cash balance is $130,000. Required: 1. Prepare a schedule of cash receipts from sales for each of the months of June and July 2. Prepare the merchandise purchases budget for June and July 3. Prepare a schedule of cash payments for merchandise purchases for June and July. Assume May's budgeted merchandise purchases is $328,790. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 July Prepare a schedule of cash receipts from sales for each of the months of June and July. AZTEC COMPANY Schedule of Cash Receipts from Sales May June Sales $ 380,000 $ 825,000 $ 675,000 Cash receipts from: Collections of current period sales $ 214,500 $ 175,500 Collections of prior period sales 266,400 610,500 Total cash receipts $ 480,900 $ 786,000 Required Required 2 > Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the merchandise purchases budget for June and July AZTEC COMPANY Merchandise Purchases Budgets June July Budgeted sales units 5,500 4,500 Calculation of desired ending inventory Next period budgeted sales units 825,000 675,000 Ratio of inventory to future sale 68,400% 156,750% Add: Desired ending inventory 0 X 0 X Budgeted sales units x 5,500 4,500 Less: Beginning inventory units (360,000) (8,250,000) Units to purchase (354,500) (8,245,500) Cost per unit $ 110 $ 110 $ $ Cost of merchandise purchases (38.995,000) (907,005,000) LULE Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare a schedule of cash payments for merchandise purchases for June and July. Assume May's budgeted merchandise purchases is $328,790 AZTEC COMPANY Schedule of Cash Payments for Merchandise Purchases May June July Merchandise purchases $360,000 $ 825,000 $ 675,000 Cash payments for Current period purchases $ 495,000 $ 405,000 Prior period purchases 144,000 330,000 Total cash payments for merch purchases $ 639,000 $ 735,000 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your answers to the nearest whole dollars.) AZTEC COMPANY Cash Budget June and July June $ 130,000 480,900 610,900 $ Beginning cash balance Add: Cash receipts from sales Total cash available July 503,695 786,000 1,289,695 Less: Cash payments for: Selling and administrative expenses Interest expense 107.000 205 107.000 3,375 107,205 Total cash payments Preliminary cash balance Additional loari (loan repayment) Ending cash balance 503,695 0 503,695 110,375 1,179,320 (1.049,320) 130,000 $ Loan balance June 41,000 Loan balance Beginning of month Additional loan (loan repayment) Loan balance - End of month July 41.000 (1,049,320) $ (1,008,320) 41,000