The president of the retailer Prime Products has just approached the company's bank with a request for a $61000, 90- dey loan The purpose of the loan is to assist the company in acquiring inventories Because the company has had loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should are available for the months April through June, during which the loan will some difficulty in paying off its a On April 1, the start of the loan period, the cash balance will be $42,500. Accountsreceivble on April 1 will total $165.200, of which $141,600 will be collected during April and S18,380 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 sale, 60% in the month following sale, and 8% in the second month following sale The other 2% is bad debts that are never collected Budgeted sales and expenses for the three- month period follow April Hay Sales (al1 on account) herchandise purchases Payrell $ 232,08o 281,500 138,00 27,600 27,600 22,800 41,2041,220 41,200 60,200 60,280 60,0 s 82,0003 33,000 33,00 33,000 Advertising Depreciation ing the month following purchase Accounts payable for merchandise purchases during March, which will be paid in April, total $150,500 d In preparing the cash budget, assume that the $61,000 loan will be made in Aprl and repad in June Interest on the loan wi Required: Calculate the expected cash collections for April, May, and June, and for the three months in tot al 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