Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow. May (Actual) June {Budget} July (Budget) August (Budget) Sales units 2,886 5,539 4,533 5,799 Sales dollars $ SZBJBBB 5 836,606 $ ?29,886 5 592,360 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 18% of the next month's unit sales. The May 31 actual inventory level of 990 units is consistent with this policy. Selling and administrative expenses of $135,000 per month are paid in cash. The company's minimum cash balance at monthend is $150,000. Loans are obtained atthe end of any month when the preliminary cash balance is below $150,000. Any preliminary cash balance above $150,000 is used to repay loans at month-end. This loan has a 1.0% monthly interest rate. On May 31, the loan balance is $38,500, and the company's cash balance is $150,000. Required: 1. Prepare a schedule of cash receipts from sales for each of the months of June and July. 9. 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 $289,300. 4. Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance atthe end of each month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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 July Sales $ 320,000 880,000 720,000 Cash receipts from: Collections of current period sales Collections of prior period sales Total cash receipts' Required] 3 Requiredz a Required3 Required4 Prepare the merchandise purchases budget for June and July. 4,500 Budgeted sales units 5,500 Calculation of desired ending inventory Next period budgeted sales units Ratio of inventory to future sale Unite to purchase Cost per unit Cost of merchandise purchases \fJ II II D. ...................... I 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} Beginning cash balance Total cash available Less: Cash payments for: Total cash payments Total cash payments Preliminary cash balance Ending cash balance Loan balance June July Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month