Problem 8-23 (Algo) Schedule of Expected Cash Collections; Cash Budget [LO8-2, LO8-8] The president of the retaller Prime Products has just approached the company's bank with a request for a $93,000,90-day loan. The purpose of the loan is to assist the company in acquiring inventorles. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are avallable for the months Apnil through June, during which the loan will be used a. On April 1, the start of the Ioan period, the cash balance will be $36,000. Accounts recelvable on April 1 will total $179,200,0, which $153,600 will be collected during April and $20,480 will be collected during May. The remainder will be uncollectible b. Past experience shows that 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% is bad debts that are never collected. Budgeted sales and expenses for the threemonth 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 $162,500. d. In preparing the cash budget, assume that the $93,000 loan will be made in April and repaid in June. Interest on the loan will total $1,280 Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in totat. 2 Prepare a cash budget, by month and in total, for the three-month period