The president of the retailer Prime Products has just approached the company's bank with a request for a $70,000.00-day loan The purpose of the loan to assat 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 cath budget to help determine whether than should be made the following data are available for the month April through June, during which the loan will be used o. On April the start of the loan period, the cash balance will be $16,500. Accounts receivable on April 1 will total 5190.400, of which $169 200 will be collected during April and 921.700 will be collected during May. The remainder will be collectible Post experience shows the solamont's sales are collected in the month of sale, con in the month following sale, and as in the second month following sale. The other bad debits that are never collected Budgeted sales and expenses for the three-month period follow April May June Sales (all on account) $312.000 3428.000 $319.000 Merchandise purchases $ 204,000 $ 162.000 5 178.500 Payroll $ 24 000 $ 24,000 $18.900 Lease payments $ 24800 $24.800 $24.800 Advertising 579 200 $79.200 $ 74.400 Equipment purchases 50 $0 $ 78,000 Depreciation $ 17.200 $ 17,200 $ 17200 Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be pad in April total 5160.000 din preparing the cash budget, assume that the $70.000 loan will be made in Apeland and in June Interest on the loan tot $1.40 Required: 1 Calculate the expected cash collections for Apr May, and June and for the three months in total 2. Prepare a cash budget, by month and in total for the three month period in the the below yuyut, assume that the $79,000 loan will be made in April and repaid in June. Interest on the loan will total $1,140 lib payable for merchandise purchases during March, which will Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total 2. Prepare a cash budget, by month and in total, for the three-month period. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the expected cash collections for April, May, and June, and for the three months in total Schedule of Expected Cash Collections April May June Quarter Total cash collections Rome Required 2 > muicated by a minus sign.) u period. (casn oeficiency, repayments and interest should May June Quarter Prime Products Cash Budget April Beginning cash balance Add receipts: Collections from customers Total cash available Less cash disbursements Merchandise purchases Payroll Lease payments Advertising Equipment purchases Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing Ending cash balance