On April $1,$ the start of the loan period, the cash balance will be $$26,500.$ Accounts receivable on April $1$ will total $$170,800,$ of which $$146,400$ will be collected during April and $$19,520$ will be collected during May. The remainder will be uncollectible.

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:

April May June

Sales $($all on account$)$ $ $208,000$ $ $546,000$ $ $270,000$

Merchandise purchases $ $152,000$ $ $172,500$ $ $135,000$

Payroll $ $24,400$ $ $24,400$ $ $19,600$

Lease payments $ $23,600$ $ $23,600$ $ $23,600$

Advertising $ $72,400$ $ $72,400$ $ $49,260$

Equipment purchases $$ $ $78,500$

Depreciation $ $29,000$ $ $29,000$ $ $29,000$

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 $$142,500.$

In preparing the cash budget, assume that the $$65,000$ loan will be made in April and repaid in June. Interest on the loan will total $$1,000.$

Required:

Calculate the expected cash collections for April, May, and June, and for the three months in total.

Prepare a cash budget, by month and in total, for the three$-$month period.