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: April May June Sales (all on account) $ 280, 090 $ 522,000 $ 299, 000 Merchandise purchases $ 241, 000 $ 170, 500 $ 139, 500 Payroll $ 23, 000 $ 23, 000 $ 26, 600 Lease payments $ 23, 000 $ 23,000 $ 23, 000 Advertising $ 60, 400 $ 60, 400 $ 78, 020 Equipment purchases $ 108, 090 Depreciation $ 28, 000 $ 28,000 $ 28,000 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: 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 $75,000 loan is made on April 1 and repaid with interest on June 30