The president of the retailer Prime Products has just approached the companys bank with a request for a $30,000, 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 available for the months April through June, during which the loan will be used: a. April 1, the start of the loan period, the cash balance will be $24,000. Accounts receivable on April 1 will total $140,000, of which $120,000 will be collected during April and $16,000 will be collected during May. The remainder will be uncollectible. b. Past experience shows that 30% of a months 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% represents bad debts that are never collected. Budgeted sales and expenses for the three-month period follow: April May June Sales (all on account) $300,000 $400,000 $250,000 Merchandise Purchases $210,000 $160,000 $130,000 Payroll $20,000 $20,000 $18,000 Lease Payments $22,000 $22,000 $22,000 Advertising $60,000 $60,000 $50,000 Equipment Purchases --- --- $65,000 (nothing in the first 2 months) Depreciation $15,000 $15,000 $15,000 (the three numbers go with each month so for example, sales, april sales are 300,000 may sales are 400,000 and june sales are 250,000. I tried to align all the numbers with the months but it got mixed over in the transition, sorry about this.) c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid during April, total $140,000 d. In preparing the cash budget, assume that the $30,000 loan will be made in April and repaid in June. Interest on the loan will total $1,200. Required: Prepare a cash budget, by month and in total, for the three-month period. ( I know this is a long problem but can someone please help me with this and explain if you can in a step by step manner what the answer is and how I go about getting the answer, each step and everything, thank you very much.)