Prepare the schedule of cash collections for april may and june

The following actual and budgeted sales relate to AgriTech Company, a distributor of agricultural products located somewhere in the Midwest. March (actual) April May. June July $50,000 60,000 72,000 90,000 48,000 The company's top executives intend to have 25% of sales as gross margin. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The company's inventory manager informs that each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold. One-half of a month's inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. In addition, the following relevant information is also provided. a. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (includes depreciation on new assets) b. Equipment costing $1,500 will be purchased for cash in April c. The company must maintain a minimum cash balance of $4,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month. The monthly interest rate is 1%. Interest must be paid at the end of each month based on the total loans outstanding for that month A snapshot from AgriTech Company's balance sheet as of March 31 is as follows Cash..... Accounts receivable. Inventory Building and equipment, net . Accounts payable Common shares $ 8,000 20,000 36,000 120,000 21,750 150,000 12,250 Retained earnings The accounts receivable at March 31 are a result of March credit sales. The accounts payable at March 31 are the result of March purchases of inventory