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Aztec Company sells its product for $150 per unit. Its actual and budgeted sales follow. _ {Initi- Dollars- Apr'il (actual) 5,869 $ 758,889 May (actual) 3,863 458,863 June (budgeted) 4, 569 675, 880 July (budgeted) 3,503 574, 866 August (budgeted) 3,?69 555,860 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, 26% in the second month alter the sale, and 4% proves to be uncoilectihle. 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 saies plus a safety stock of 150 units. The April 30 and May 31 actual inventory levels are consisterlt with this policy. Selling and administrative expenses for the year are $1,416,000 and are paid evenly throughout the year in cash. The company's minimum cash balance at month-end is $130,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $130,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annuai14% interest rate. On May 31, the loan balance is $30,500, and the company's cash balance is $130,000. Required: 1. Prepare a schedule that shows the computation of cash collections of its credit sales [accounts receivable} in 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