pls help me with required 1 and 2
He 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 $24000. Accounts receivable on April 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% is bad debts that are never collected Budgeted sales and expenses for the three month period follow 1 ( Mon ) Merchandise purchase Payroll Le payments Mivertising Equipment purchase Deptation April June $300.000 5.400,000 $250,099 $ 210,000 $160,000 $110, ado 20,000 $20,000 18.000 22.000 22.000 22.000 160.000 60.000 $ 65,000 15.000 15.000 15.000 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 $140,000 d. In preparing the cash budget assume that the $30.000 oan will be made in April and repaid in June. Interest on the loan wit foto $1200 Required: Calculate the expected cash collections for April, Max, and June, and for the tree months in total, 2. Prepare a cash budget, by month and in total, for the three-month period Complete this question by entering your answers in the tabs below PY Wed MacBook Air 90 1 1 A $ 4 % 5 & 7 * 8 2 3 6 9 W E R Y U S D F G J K Less payment Advertising Equipment purchases Depreciation 10.00 922,000 22,000 22,000 $ 60,000 $ 60,000 $ 50,000 $ 65,000 $ 15,000 $ 15,000 $ 15,000 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise pu March, which will be paid in 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 th $1.200 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. Complete this question by entering your answers in the tabs below. Required Required 2 Calculate the expected cash collections for April, May, and June and for the three months in total Schedule of Expected Cash Collections April Quarter Told cash collection Hard 2 > June Prov Nakt MacBook Air 30 3 44 FS A * 3 2 $ 4 % 5 & 7 6 8 9 W E R T T Y U C 2 Required 1 Required 2 Prepare a cash budget, by month and in total, for the three-month period. (Cash deficiency, repayments and interest should be indicated by a minus sign) May June Quarter Prime Products Cash Budget April Beginning cash balance Add recept Collections from customers Total cash avle Less cash disbursement Merchandise purses Payroll Lease payments Advertising Equiment purchases Total cash burns Exo deficiency of cash available over disbursement Financing Bawings Repas To neng Ending cash be Prev Next MacBook Air EO 11 1 A % 23 # 3 $ 4 & 7 6 8 2 9 W E R . Y Tso F G H J K
