The president of the retaifer Prime Products has just approached the company's bank with a request for a $81,000,90-day loan. The purpose of the loan is to assist the company in acquiring inventories. 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 April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $26,800. Accounts receivable on April 1 will total $193,200, of which $165,600 will be collected during April and $22,080 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 sole, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bod debts that are never collected. Budgeted sales and expenses for the threemonth periog follow c. Merchnoise purchases are pald in full during the month following purchase. Accounts payable for merchandise purchases during d. In prepaing the cosh budget, assume that the 581,000 loan will be made in April and repaid in June, Interest on the loan will total March, which will be paid in Apri, total 5166,000. 51,160. 1. Colculate the expected cash collections for April, May, and June, and for the three months in total. Pequired: 2. Prepare a cast budget, by month and in total, for the three-month period