Aztec Company sells its product for $170 per unit. Its actual and budgeted sales follow.
85 5087876 - Jennifer | x | healthrive.prod - Hc x | Search results X |+ ANAHEIM T65 AND x f (1) Facebook x |M Inbox - christa.ange x |j Sign In x My Drive - Google | X _ Connect * *Course Hero * + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flearn.liberty.edu%252Fwebapps%252Fportal%252Fframeset.jsp%253Ftab_tab_group_id%... > . .. Homework 6 i Saved Help Save & Exit Submit Check my work Aztec Company sells its product for $170 per unit. Its actual and budgeted sales follow. Units Dollars April (actual 1,000 $ 680,900 May (actual) 2,000 340, 000 15 June (budgeted) 5,000 850,000 points July (budgeted) 1,000 849, 000 August (budgeted) 4,500 765,000 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 Book 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 18% of the next month's unit sales plus a safety stock of 100 units. The April 30 and May 31 actual Print inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,968,000 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 In necessary, by borrowing cash from the bank. If the balance exceeds $120,000, the company repays as much of the loan as it can References without going below the minimum. This type of loan carries an annual 13% interest rate. On May 31, the loan balance is $40,000, 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. Required 1 Required 2 Required 3 Required 4 Required 5 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. Percent Collected in April May June July August Credit sales from: April May Grav Type here to search O 10:49 PM 8/7/2020
