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I have an accounting question with 5 parts and need assistance. Thanks The file is attached Question 1 Aztec Company sells its product for $160

I have an accounting question with 5 parts and need assistance. Thanks The file is attached

image text in transcribed Question 1 Aztec Company sells its product for $160 per unit. Its actual and projected sales follow. April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) Units 7,500 3,600 8,000 5,500 3,600 Dollars $1,200,000 576,000 1,280,000 880,000 576,000 All sales are on credit. Recent experience shows that 26% of credit sales is collected in the month of the sale, 44% in the month after 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. All purchases are payable within 14 days. Thus, 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 20% of the next month's unit sales plus a safety stock of 55 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,464,000 and are paid evenly throughout the year in cash. The company's minimum cash balance at month-end is $130,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $130,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 14% interest rate. On May 31, the loan balance is $35,000, and the company's cash balance is $130,000. (Round final answers to the nearest whole dollar.) rev: 11_19_2013_QC_40413, 10_21_2014_QC_56990 Required information Required: a. Prepare a table that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July. b. Prepare a table that shows the computation of budgeted ending inventories (in units) for April, May, June, and July. Label examples: Budgeted beginning inventory (units) Budgeted cost per unit Budgeted ending inventory (units) Budgeted unit sales for month c. 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. d. Prepare a table showing the computation of cash payments on product purchases for June and July. e. 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. (Do not round intermediate calculations.)

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