Prime Products hopes to borrow $$75,000$ on April $1$ and repay it plus interest of $$1,100$ 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 $$42,600.$ Accounts receivable on April $1$ will total $$184,800,$ of which

$$158,400$ will be collected during April and $$21,120$ 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:

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 $$180,000.$

Required:

Calculate the expected cash collections for April, May, and June, and for the three months in total.

Prepare a cash budget, by month and in total, for the three$-$month period. Assume the $$75,000$ loan is made on April $1$ and repaid

with interest on June $30.$Required $1$

Required $2$

Prepare a cash budget, by month and in total, for the three$-$month period. Assume the $$75,000$ loan is made on April $1$ and repaid with interest on June $30.$

Note: Cash deficiency, repayments and interest should be indicated by a minus sign.

$\backslash$table$[[$Prime Products$],[$Cash Budget$],[,$April,May,June,Quarter$],[$Beginning cash balance$],[$Add receipts:$],[$Collections from customers$],[$Total cash available$],[$Less cash disbursements:$],[$Merchandise purchases$],[$Payroll$],[$Lease payments$],[$Advertising$],[$Equipment purchases$],[$Total cash disbursements$],[$Excess $($deficiency$)$ of cash available over disbursements$],[$Financing:$],[$Borrowings$],[$Repayments$],[$Interest$],[$Total financing$],[$Ending cash balance,,,,$]]$