Complete "Problem 8-21 Schedule of Expected Cash Collections; Cash Budget" in chapter 8 ofManagerial Accountingand present your responses in an Excel spreadsheet.

I've attached the information needed as well as the template to fill in. Thank you

PROBLEM 8-21 Schedule of Expected Cash Collections; Cash Budget [LO8-2, LO8-8] The president of the retailer Prime Products has just approached the company's bank with a request for a $30,000, 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: a. On April 1, the start of the loan period, the cash balance will be $24,000. Accounts receivable on April 1 will total $140,000, of which $120,000 will be collected during April and $16,000 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% rep-resents bad debts that are never collected. Budgeted sales and expenses for the three-month period follow: April May June Sales (all on account) . . . . . . . . . . . . . $300,000 $400,000 $250,000 Merchandise purchases . . . . . . . . . . . $210,000 $160,000 $130,000 Payroll . . . . . . . . . . . . . . . . . . . . . . . . . $20,000 $20,000 $18,000 Lease payments . . . . . . . . . . . . . . . . . $22,000 $22,000 $22,000 Advertising . . . . . . . . . . . . . . . . . . . . . . $60,000 $60,000 $50,000 Equipment purchases . . . . . . . . . . . . . $65,000 Depreciation . . . . . . . . . . . . . . . . . . . . $15,000 $15,000 $15,000 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid during April, total $140,000. d. In preparing the cash budget, assume that the $30,000 loan will be made in April and repaid in June. Interest on the loan will total $1,200. Required: 1. Prepare a schedule of 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. 3. If the company needs a minimum cash balance of $20,000 to start each month, can the loan be repaid as planned? Explain. Week 7 Assignment Template ALL YELLOW HIGHLIGHTED CELLS REQUIRE DATA INPUT DO NOT KEY OVER FORMULAS IF YOU SEE A RED TRIANGLE IN THE CORNER OF A CELL, I HAVE INSERTED A COMMENT TO HELP YOU. HOVER OVER THE CELL TO SEE THE COMMENT. Name: Date: Class: Professor: Number/Problem 1 Schedule of Expected Cash Collections... Monthly Sales totals not the figured percentages here 2 Description From Accounts Receivable From April Sales: 30% $ 60% $ 8% $ From May Sales: 30% $ 60% $ From June Sales: 30% $ Total Cash Collections Month May April - $ - $ - - June $ - $ - $ $ - $ - - $ $ - $ $ $ $ $ $ $ $ $ $ $ - $ - Quarter $ - Cash Budget... Description Cash Balance, Beginning..................... Add Receipts: Collection from Customers........... Total Available...................................... Less Disbursements: Merchandise Purchases.................. Payroll................................................ Lease Payments............................... Advertising....................................... Equipment Purchases.................... Total Dispursements............................ Month May April June Quarter $ - $ - $ - $ - $ $ - $ $ - $ $ - $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - $ $ $ $ $ $ - Excess (Deficiency) of Receipts over Dispursements........................... Financing: Borrowings...................................... Repayments.................................... Interest............................................ Total Financing...................................... Cash Balance, Ending..................... 3 Provide your answer here... $ - $ - $ - $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $ - $ $ $ $ $