Aztec Company sells its product for $170 per unit. Its actual and budgeted sales follow. Units 3,000 2,000 5,000 Dollars $510,000 340,000 850,000 April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) 4,000 849,000 4,000 680,000 All sales are on credit. Recent experience shows that 28% of credit sales is collected in the month of the sale, 42% in the month after the sale, 26% in the second month after the sale, and 4% proves to be uncollectible. The product's 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 month's unit sales plus a safety stock of 60 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,392,000 and are paid evenly throughout the year in cash. The company's 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 10% interest rate. On May 31, the loan balance is $42,000, and the company's cash balance is $120,000. Required: 1. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July. 2. Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April, May, June, and July. 3. 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. 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. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required Required Required Required Required Required Required Required Required Required Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July. 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 Percent Collected in May June July April August Credit sales May June July April June July August Amount Paid in Amount Collected in May June July Total May June July Total April August Credit sales from: April May June 510 000 340.0001 850.0001 680,000 680.000 July August Required Required 2 > Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required Required Required Required Required Required Required Required Required Required Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April, May, June, and 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. (Do not round intermediate calculations. Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar value.) Show less AZTEC COMPANY Cash Budget June and July June July AZTEC COMPANY Budgeted Ending Inventory For April May June and July April May Next month's budgeted sales units) Ratio of inventory to future sales Budgeted "base" ending inventory Cash payments for Total cash payments Preliminary cash balance Required 1 Required 3 > Loan balance June Loan balance Beginning of July Complete this question by entering your answers in the tabs below. Required Required Required Required Required 45 Additional loan loan repayment) Loan balance - End of month Aztec Company sells its product for $170 per unit. Its actual and budgeted sales follow. Units 3,000 2,000 5,000 Dollars $510,000 340,000 850,000 April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) 4,000 849,000 4,000 680,000 All sales are on credit. Recent experience shows that 28% of credit sales is collected in the month of the sale, 42% in the month after the sale, 26% in the second month after the sale, and 4% proves to be uncollectible. The product's 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 month's unit sales plus a safety stock of 60 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,392,000 and are paid evenly throughout the year in cash. The company's 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 10% interest rate. On May 31, the loan balance is $42,000, and the company's cash balance is $120,000. Required: 1. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July. 2. Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April, May, June, and July. 3. 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. 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. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required Required Required Required Required Required Required Required Required Required Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July. 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 Percent Collected in May June July April August Credit sales May June July April June July August Amount Paid in Amount Collected in May June July Total May June July Total April August Credit sales from: April May June 510 000 340.0001 850.0001 680,000 680.000 July August Required Required 2 > Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required Required Required Required Required Required Required Required Required Required Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April, May, June, and 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. (Do not round intermediate calculations. Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar value.) Show less AZTEC COMPANY Cash Budget June and July June July AZTEC COMPANY Budgeted Ending Inventory For April May June and July April May Next month's budgeted sales units) Ratio of inventory to future sales Budgeted "base" ending inventory Cash payments for Total cash payments Preliminary cash balance Required 1 Required 3 > Loan balance June Loan balance Beginning of July Complete this question by entering your answers in the tabs below. Required Required Required Required Required 45 Additional loan loan repayment) Loan balance - End of month