Please help solve this problem!!!!
Problem2: Lupdidu, president of Basic Masic, has just approached the company's bank with a cna eries of loans. The purpose of the loans is to assist the company in request for a series of loans. The purpose inventories in support of peak Aperil sales. Since the company has had some difficulty in paying whether off its loans in the past, the loan officer has asked for a cash budget to help determine the loan should be made. The following dats are available for the mooths which the loan will be used: a On April I, the start of the loan period, the cash balance will be $15000. Accounts on April I will total $164 000, of which $138 000 will be collected during receivable April and the remainder will be collected during May Past experience shows that 20% of the month's sales are collected in the month of sale, 55% in the month following sale, and 25% in the second month folowing sale. Bad debts are negligible. Budgeted sales and expenses for the period follow, these numbers are taken directly from the company's budgeted income statement June Notes: April- May 5280 000,00 $340 000,00 $260 $196 000,00 $ 10 000,00 Sales 000,00 Merchandise purchases S?87 000,00 | si30 $7000.00 | $11 000.00 | Includes adjustment of $2000 every month $14 000 $14000 $14000 Lease Advertising Includes an a cost to be paid in September of $10000 in every month $70 000 $8 000 $20 000 $20 000 $20000 $75 000 $40 000 Equipment purchasesS0 d. Merchandise purchases are paid in the following way one half of a particular month's purchases are paid that month and another half is paid during the month following purchase. Accounts payable for merchandise purchases on March 31, total $49 000. e. In preparing the cash budget, assume that the $40000 loan will be made in April and repaid in June, another loan of $45 000 will be made in May and also repaid in June. Interest rate on the loans is 2% month on outstanding loan amount during the month. Assume that all borrowings are made in the beginning of a month and all repayments are made at the end of a month. All accrued interest is repaid only when the whole principal is repaid Required: . Prepare a schedule of budgeted cash collections for April, May, and June and for the 2. Prepare a schedule of payments for merchandise purchases for April, May, and June and three months in total. What is the A/R balance at the end of June? for the three months in total. What is the A/P balance for merchandise purchases at the end of June? Prepare a cash budget, by month and in total, for the three-month period. 3. 4. If the company needs a minimum cash balance of S5'000 to start each month, can the loan be repaid as planned? Explain. 5. Refer to the original data, assume that a company will suffer bad debts due to deteriorating economic situation and the company's cash collection pattern would shift as
