Aztec Company sells its product for $170 per unit. Its actual and budgeted sales follow.

May (Actual)- Sales Units:2,400 Sales Dollars:$ 408,000

June (Budget) - Sales Units:6,000 Sales Dollars:$ 1,020,000

July (Budget) - Sales Units:5,000 Sales Dollars:$ 850,000

August (Budget) - Sales Units:4,400 Sales Dollars:$ 748,000

All sales are on credit. Collections are as follows: 28% is collected in the month of the sale, and the remaining 72% 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 24% of the next month's unit sales. The May 31 actual inventory level of 1,440 units is consistent with this policy. Selling and administrative expenses of $111,000 per month are paid in cash. The company's minimum cash balance at month-end is $140,000. Loans are obtained at the end of any month when the preliminary cash balance is below $140,000. Any preliminary cash balance above $140,000 is used to repay loans at month-end. This loan has a 1.0% monthly interest rate. On May 31, the loan balance is $43,000, and the company's cash balance is $140,000.

Required: 1.Prepare a schedule of cash receipts from sales for each of the months of June and July

X 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 receipts from sales for each of the months of June and July. AZTEC COMPANY Schedule of Cash Receipts from Sales May June July Sales 3 408.000 $ 1.020.000 850.000 Cash receipts from: Collections of current period sales 285.800 734.400 X Collections of prior period sales 679.360 X 238.000 x Total each rocelpis 804.080 072.400* Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the merchandise purchases budget for June and July. AZTEC COMPANY Merchandise Purchases Budgets June July Budgeted sales units 8.000 5.000 Calculation of desired ending inventory Next period budgeted sales units 1 200 X 1.098 Ratio of inventory to future sale 245 Less: Beginning inventory units X 1.440 0 1.200 X Budgeted sales units X 7.440 6 200 Units to purchase 7.440 6.200 Cost per unit 110 110 Cost of merchandise purchases $018.400 802 000* 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 $359.040. AZTEC COMPANY Schedule of Cash Payments for Merchandise Purchases May June July Merchandise purchases $ 350.040 833.6003 534.160 Cash payments for Current period purchases 143.010 X]3 253 440 X Prior period purchases 280. 160 320 408 x Total cash payments for march. purchases 523.770 573.930Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the and 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.) AZTEC COMPANY Cash Budget June and July June July Beginning cash balance 140.000 3 140,000 Add: Cash receipts from sales 578.300 0 072.400 Total each available 710.380 1.112.400 Lack Cash payments for Merchandise purchases 520.778 573.038 Selling and administrative expenses O 111.000 111,000 420 0 Total cash payments 835 208 885.024 Preliminary cash balance 84.1540 428.478 6) Additional loan (loan repayment) 56.848 0 08.848 57 Ending cash balance 140.000 525.327 Loan balance June July Loan balance - Beginning of month 43.000 5 28.848 Additional loan (loan repayment) 56.843 0 08.048 Loan balance . End of month 187 082