Prime Products hopes to borrow $59,000 on April 1 and repay it plus interest of $940 on June 30. 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 $37.000. Accounts receivable on April 1 will total $162,400, of which $139,200 will be collected during April and $18,560 will be collected during May. The remainder will be uncollectible. b. The company estimates 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% are bad debts that are never collected Budgeted sales and expenses for the three- month period follow Sales (all on account) Merchandise purchases Payroll Lease payments April $422,000 $270,000 May $ 496,000 $ 203,500 $ 28,400 $ 28,400 June $337,000 $174,000 $ 25,300 $ 40,800 $ 40,800 $ 40,800 Advertising Equipment purchases Depreciation $ 78,200 $ 78,200 $ 65,880 $ 76,000 $ 28,200 $ 28,200 $ 28,200 c. 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 $172,500. 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. Assume the $59,000 loan is made on April 1 and repaid with interest on June 30 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Mc Graw Hill Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the expected cash collections for April, May, and June, and for the three months in total. Schedu of Expected Cash Collections Total cash collections April May June Quarter < Prev 3 of 8 Next > Exam 3 3 eBook with interest on June 30. Note: Cash deficiency, repayments and interest should be indicated by a minus sign. Beginning cash balance Add receipts Collections from customers Total cash available Less cash disbursements Merchandise purchases Payroll Lease payments Prime Products Cash Budget April May June Quarter Advertising Equipment purchases Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings + Repayments Interest Total financing Ending cash balance