Check my work 3 The president of the retailer Prime Products has just approached the company's bank with a request for a $49,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used: 6 points a. On April 1, the start of the loan period, the cash balance will be $38,500. Accounts receivable on April 1 will total $148,400, of which $127,200 will be collected during April and $16,960 will be collected during May. The remainder will be uncollectible. b. Past experience shows that 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the three-month period follow: eBook Print References April ay $ 480,000 $450,000 $ 315,000 $ 183,000 June Sales (all on account) Merchandise purchases Payroll Lease payments Advertising 327,000 s 163,000 19,800 34,200 21,400 34,200 34,200 74,600 $ 74,600 21,400 65,800 urchases reciation Depr 16,200 $ 16,200 $ 16,200 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $186,000. In preparing total $840 cash budget, assume that the 49,000 lo repaid Interes w an Check my work 3 s 16,200 $ 16,200 16,200 Depreciation Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $186,000. d. In preparing the cash budget, assume that the $49,000 loan will be made in April and repaid in June. Interest on the loan will total $840. 6 points eBook Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total 2. Prepare a cash budget, by month and in total, for the three-month period Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the expected cash collections for April, May, and June, and for the three months in total. April May June Quarter Total cash collections Required 1 Required 2