Aztec Company sells its product for $155 per unit. Its actual and budgeted sales follow.

	Units	Dollars
April (actual)	5,100	$	790,500
May (actual)	3,100		480,500
June (budgeted)	8,200		1,271,000
July (budgeted)	7,200		1,116,000
August (budgeted)	4,000		620,000

All sales are on credit. Recent experience shows that 25% of credit sales is collected in the month of the sale, 50% in the month after the sale, 24% in the second month after the sale, and 1% proves to be uncollectible. The products purchase price is $100 per unit. All purchases are payable within 12 days. Thus, 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 20% of the next months unit sales plus a safety stock of 150 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,485,000 and are paid evenly throughout the year in cash. The companys minimum cash balance at month-end is $150,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $150,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 12% interest rate. On May 31, the loan balance is $40,000, and the companys cash balance is $150,000.

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 in

		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	$790,500	?	?	?
May	480,500		?	?	?
June	1,271,000			?	?	?
July	1,116,000				?	?
August	620,000					?
				?	?

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 month's budgeted sales (units)	?	?	?	?
Ratio of inventory to future sales	?	?	?	?
Budgeted "base" ending inventory	?	?	?	?
?	?	?	?	?
?	?	?	?	?

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 merchandise
?	?	?	?
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 product 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 in:
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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus signs.)

Aztec Company
Cash Budget
June and July
	June	July
Beginning cash balance	?	?
?	?	?
Total cash available
Cash disbursements:
?	?	?
?	?	?
?	?	?
?	?	?
Total cash disbursements
Preliminary cash balance	?	?
?	?	?
Ending balance	?	?
Loan Balance
	June	July
Loan balance - Beginning of month	?
Additional loan (loan repayment)	?
Loan balance - End of month	?	?