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Aztec Company sells its product for $170 per unit. its actual and budgeted sales follow. All sales are on credit. Collections are as follows: 26%

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Aztec Company sells its product for $170 per unit. its actual and budgeted sales follow. 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 poid 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 imventory of tori of the next month's unit sales, The May 31 actual inventory level of 1.045 units is consistent with this policy. Selling and administrative expenses of $167,000 per month are poid in cash. The company's minimum cash bolance 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 1.5% monthly interest rate. On May 31 , the loan balance is $44.000, 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. 2. Prepare the merchandise purchases budget for June and July. 3. Prepare a schedule of cash payments for merchandise purchases for June and July. Assume Nlay's budgoted merchandise purchases is $364,430 4. Prepare a cash budget for June and July, including any loon activity and interest expense. Compute the loan baiance at the end at each month, Complete this question by entering your answers in the tabs below. Prepare a cash budget for June and July, including any loan activity and interest expense. Compite the loan balance at the end of each month. (Negative batances and Loan regayment amounts (if any) thould bet indicated with minus sigr. Raund your answers to the nearest whole dollars.) Prepore a cash budget for fune and July, including any losn activity and interest expense. Compote the loan balance at the end of each month, (Negative balances and Loan repaymient ampunts (if amy) should be indicated weth minus tign. Round

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