The president of the retaller Prime Products has just approached the company's bank with a request for a $32,000,90-day loan. The purpose of the loan is to assist the company in acquiring inventorles. 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 perlod, the cash balance will be $33,600. Accounts recelvable on April 1 will total $142,800, of which $122,400 will be collected during April and $16,320 will be collected during May. The remainder will be uncollectible. b. Past experlence 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 threemonth perlod follow: c. Merchandise purchases are pald in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in Aprill, total $153,500. d. In preparing the cash budget, assume that the $32,000 loan will be made in April and repaid in June. Interest on the loan will total $800. 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 perlod. Complete this question by entering your answers in the tabs below. Calculate the expected cash collections for April, May, and June, and for the three months in total. Prepare a cash budget, by month and in total, for the three-month period. Note: Cash deficiency, repayments and interest should be indicated by a minus sig