Problem 20-68A Merchandising: Preparation of cash budgets for three periods [S P4 Sony Stereo began operations in March. March sales were $180,000 and purchases were $100,000. The beginning cash balance for April is $3,000. Sony's owner approaches the thank for an $80,000 loan to be made on April 2 and repaid on June 30, The bank's loan officer asks the owner to prepare monthly cash budgets. Its budgeted sales, merchandise purchases, and cash payments for other expenses for the next three months follow: Alt sales are on credit where 90% of credit sales are collected in the month following the sale, and the remaining 10% is collected in the All sales are on credit where 90% of credit sales are collected in the month following the sale, and the remaining 10% is collected in the yecond month following the sale. All merchandise is purchased on eredit: 80% of the balance is paid in the month following a purchase, and the remaining 20% is paid in the second month. Required Prepare the following for the months of Aprit, May, and June: 1. Schedule of cash receipts from sales: 2. Schedule of cash payments for direct materials. 3. Cash budget