Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow. Sales units Sales dollars May (Actual) June (Budget) July (Budget) 2,200 $352,000 5,500 $880,000 August (Budget) 4,500 $720,000 900 F624,000 All sales are on credit. Collections are as follows: 26% is collected in the ons 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 $110,000 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 1.0% 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 $310,970. 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 Prepare a schedule of cash payments for merchandise purchases for June and July. Assume May's budgeted merchandise purchases is $310,970. AZTEC COMPANY 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 $310,970. AZTEC COMPANY Schedule of Cash Payments for Merchandise Purchases Merchandise purchases Cash payments for Current period purchases May $ 310,970 ( June July Prior period purchases Total cash payments for merch. purchases 124,388 ( $ 124,388 0 5 end of each month. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign your answers to the nearest whole dollars.) AZTEC COMPANY Cash Budget 14 points June and July June July Beginning cash balance Total cash available Less: Cash payments for Total cash payments Preliminary cash balance 0 0 Ending cash balance 0 0 Loan balance June July Loan balance-Beginning of month Additional loan (loan repayment) Loan balance- End of month