wewno Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow. April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) Units 3,500 2,800 6,000 5,000 3,800 Dollar $ 560,000 448,000 960,000 959,000 608.000 All sales are on credit. Recent experience shows that 22% of credit sales is collected in the month of the sale, 48% in the month after the sale, 28% in the second month after the sale, and 2% proves to be uncollectible. The product's purchase price is $110 per unit. 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has a policy to maintain an ending monthly inventory of 23% of the next month's unit sales plus a safety stock of 80 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,572,000 and are paid evenly throughout the year in cash. The company's minimum cash balance at month-end is $140,000. This minimum is maintained, ir necessary, by borrowing cash from the bank. If the balance exceeds $140,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries on annual 12% Interest rate. On May 31, the loan balance is $36,000, and the company's cash balance is $140,000 Required: 1. Prepare a schedule that shows the computation of cash collections of its credit sales faccounts receivable) each of the months of June and July 2. Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April, May, June, and July 3. Prepare the merchandise purchases budget for May, June, and July. Report calculations in units and then show the dollar amount of purchases for each month. 4. Prepare a schedule showing the computation of cash payments for product purchases for June and July 5. Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month. (Do not round intermediate calculations. Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar value.) $ AZTEC COMPANY Cash Budget June and July June Beginning cash balance 140,000 Cash receipts from customers 583,040 Total cash available 723.040 Cash payments for Purchases 536,404 Selling and administrative expenses 131,000 Interest expense 360 July 140,000 797,220 937.220 565,664 131,000 1,207 697,871 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 667.764 55,276 84.724 140,000 239,349 (99,349) 140,000 $ Loan balance wewno Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow. April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) Units 3,500 2,800 6,000 5,000 3,800 Dollar $ 560,000 448,000 960,000 959,000 608.000 All sales are on credit. Recent experience shows that 22% of credit sales is collected in the month of the sale, 48% in the month after the sale, 28% in the second month after the sale, and 2% proves to be uncollectible. The product's purchase price is $110 per unit. 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has a policy to maintain an ending monthly inventory of 23% of the next month's unit sales plus a safety stock of 80 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,572,000 and are paid evenly throughout the year in cash. The company's minimum cash balance at month-end is $140,000. This minimum is maintained, ir necessary, by borrowing cash from the bank. If the balance exceeds $140,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries on annual 12% Interest rate. On May 31, the loan balance is $36,000, and the company's cash balance is $140,000 Required: 1. Prepare a schedule that shows the computation of cash collections of its credit sales faccounts receivable) each of the months of June and July 2. Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April, May, June, and July 3. Prepare the merchandise purchases budget for May, June, and July. Report calculations in units and then show the dollar amount of purchases for each month. 4. Prepare a schedule showing the computation of cash payments for product purchases for June and July 5. Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month. (Do not round intermediate calculations. Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar value.) $ AZTEC COMPANY Cash Budget June and July June Beginning cash balance 140,000 Cash receipts from customers 583,040 Total cash available 723.040 Cash payments for Purchases 536,404 Selling and administrative expenses 131,000 Interest expense 360 July 140,000 797,220 937.220 565,664 131,000 1,207 697,871 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 667.764 55,276 84.724 140,000 239,349 (99,349) 140,000 $ Loan balance