[The following information applies to the questions displayed below.]

Aztec Company sells its product for $190 per unit. Its actual and projected sales follow.

UnitsDollarsApril (actual)8,500$1,615,000May (actual)2,600494,000June (budgeted)7,0001,330,000July (budgeted)6,5001,235,000August (budgeted)3,800722,000

All sales are on credit. Recent experience shows that 20% of credit sales is collected in the month of the sale, 50% in the month after the sale, 28% in the second month after the sale, and 2% proves to be uncollectible. The product's purchase price is $110 per unit. All purchases are payable within 14 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 19% of the next month's unit sales plus a safety stock of 185 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,572,000 and are paid evenly throughout the year in cash. The company's minimum cash balance at month-end is $100,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $100,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 11% interest rate. On May 31, the loan balance is $34,000, and the company's cash balance is $100,000. (Round final answers to the nearest whole dollar.)

rev: 11_19_2013_QC_40413, 10_21_2014_QC_56990

1.

value:

2.30 points

Required information

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.