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

	Units	Dollars
April (actual)	3,500	$	560,000
May (actual)	2,000		320,000
June (budgeted)	5,000		800,000
July (budgeted)	4,000		799,000
August (budgeted)	4,100		656,000

All sales are on credit. Recent experience shows that 24% of credit sales is collected in the month of the sale, 46% in the month after the sale, 25% in the second month after the sale, and 5% 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 23% of the next months unit sales plus a safety stock of 180 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,596,000 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 12% interest rate. On May 31, the loan balance is $34,500, and the companys cash balance is $120,000.

		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
May
June
July
August

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
???
???

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

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

AZTEC COMPANY
Cash Budget
June and July
???	June	July
Beginning cash balance
???
Total cash available
Cash payments for:
???
???
???
???
Total cash payments	0	0
Preliminary cash balance
???
Ending cash balance	$0	$0
Loan balance
???	June	July
Loan balance - Beginning of month
Additional loan (loan repayment)
Loan balance - End of month