[The following information applies to the questions displayed below.) Aztec Company sells its product for $200 per unit. Its actual and budgeted sales follow. April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) Units 9,500 2,000 6,500 8,000 4,400 Dollars $1,900,000 400,000 1,300,000 1,600,000 880,000 All sales are on credit. Recent experience shows that 28% of credit sales is collected in the month of the sale, 42% in the month after the sale, 27% in the second month after the sale, and 3% 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 21% of the next month's unit sales plus a safety stock of 170 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,356,000 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 12% interest rate. On May 31, the loan balance is $37,500, and the company's cash balance is $100,000. 15. value: 1.26 points Required in 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. Percent Collected in April May June July August Credit sales from: April May June July August Amount Collected in Total April May June July August Credit sales from: April May June $ 1,900,000 400,000 1,300,000 1,600,000 880,000 July August 16. value: 1.26 points Required information 2. Prepare a table that shows the computation of budgeted ending inventories (in units) for April, May, June, and July AZTEC COMPANY June July Budgeted Ending Inventory For April, May, June and July April May Next month's budgeted sales (units) Ratio of inventory to future sales (percent) Budgeted "base" ending inventory 17. value: 1.26 points Required informatio 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. AZTEC COMPANY Merchandise Purchases Budgets For May, June, and July May June July Required units of available merchandise Budgeted purchases (units) Budgeted cost of merchandise purchases 18. value: 1.26 points Required in 4. Prepare a table showing the computation of cash payments on product purchases for June and July. Cash payments on product purchases (for June and July) Percent Paid in- May June July From purchases in: May June July Amount Paid in Total May June July From purchases in: May June July 19. value: 1.32 points Required information 5. Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month. (Do not round intermediate calculations. Negative balances and Loan repayment amounts (if any) should be indicated with minus signs.) AZTEC COMPANY Cash Budget June and July June July Beginning cash balance Total cash available Cash disbursements: Total cash disbursements Preliminary cash balance Ending cash balance Loan balance June July Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month