Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow.

	Units	Dollars
April (actual)	4,000	$	640,000
May (actual)	2,400		384,000
June (budgeted)	5,000		800,000
July (budgeted)	4,000		799,000
August (budgeted)	4,000		640,000

All sales are on credit. Recent experience shows that 22% of credit sales is collected in the month of the sale, 48% in the month after the sale, 27% in the second month after the sale, and 3% proves to be uncollectible. The products 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 an ending monthly inventory of 21% of the next months unit sales plus a safety stock of 185 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,944,000 and are paid evenly throughout the year in cash. The companys minimum cash balance at month-end is $120,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $120,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 13% interest rate. On May 31, the loan balance is $49,500, and the companys cash balance is $120,000. Required:

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.

Required 1 Required 2 Required 3Required 4 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 Paid in.... May June July From purchases in May June July Amount Paid in Total May June July From purchases in: May June July