Prepare the companys cash budget for May. Show the ending loan balance at May 1.

Prepare the company's cash budget for May on the next page. Show the ending loan balance at May 1. The following data has been forecasted: April May Sales $150,000 $157,000 Merchandise Purchases 107,000 112,400 Operating Expenses Payroll 13,600 14,280 Advertising 5,400 5,700 Rent 2,500 2,500 Depreciation 7,500 7,500 End of April balances Bank loan payable 26,000 Additional data: A. Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $125,000 B. Purchases are all on credit, with 40% paid in the month of purchase; the balance is paid in the following month. C. Operating expenses are paid in the month they are incurred. D. A minimum cash balance of $25,000 is required at the end of each month. E. Loans are used to maintain the minimum cash balance. At the end of each month; interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made whenever excess cash is available. (A) Cash Collections May cash sales 50% of April credit sales 50% of March credit sales Total cash collections from customers $ Frank's Furniture Cash Budget For the month of May Beginning cash balance Cash reciepts from sales $ Total $ $ (B) Cash Payments 40% of May purchases 60% of April purchases Total cash payments for purchases $ Cash Disbursements Payments for merchandise Payroll Advertising Rent Interest Total cash disbursements Preliminary cash balance Loan repayment Cash balance, ending Loan balance, end of the month $ $ $