[The following information applies to the questions displayed below.) Abacus Company sells its product for $125 per unit. Its actual and projected sales follow. Units Dollars April (actual) 8,000 $1,000,000 May (actual) 4,000 500,000 June (budgeted) 12,000 1,500,000 July (budgeted) 6,000 750,000 August (budgeted) 7,600 950,000 All sales are on credit. Recent experience shows that 20% of credit sales is collected in the month of the sale. 30% in the month after the sale, 48% in the second month after the sale, and 2% proves to be uncollectible. The product's purchase price is $100 per unit. All purchases are payable within 12 days. Thus, 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has a policy to maintain an ending monthly Inventory of 25% of the next month's unit sales plus a safety stock of 100 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,200,000 and are paid evenly throughout the year in cash. The company's minimum cash balance at month-end is $60,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $60,000, the company repays as much of the loan as It can without going below the minimum. This type of loan carries an annual 9% Interest rate. On Ma loan balance is $32,000, and the company's cash balance is $60,000. Required: 1. Prepare a table that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July. (Omit the "$"&"%" signs in your response.) Cash collections of credit sales (accounts receivable) From sales in Total % Collected April 1000000 July May June July Total collected 2. Prepare a table that shows the computation of budgeted ending inventories (in units) for April, May, June, and July (Omit the "%" sign in your response.) Budgeted ending inventories (in units) April Next month's budgeted sales Ratio of inventory to future sales Budgeted "base" ending inventory Plus safety stock Budgeted ending inventory 3. Prepare the merchandise purchases budget for May June, and July. Report calculations in units and then show the dollar amount of purchases for each month. (Amounts to be deducted should be indicated with a minus sign. Omit the "S" sign In your response.) ABACUS COMPANY Merchandise Purchases Budgets For May, June, and July May June (Click to select) (Click to select) Required units of available merchandise (Click to select) (Click to select) (Click to select) Budgeted cost of merchandise purchases