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Aztec Company sells its product for $170 per unit. Its actual and budgeted sales follow. April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) Units 3,000 2,800 5,500 4,500 3,500 Dollars $ 510,000 476,000 935,000 934,000 595,000 All sales are on credit. Recent experience shows that 26% of credit sales is collected in the month of the sale, 44 in the month after the sale, 25% in the second month after the sale, and 5% 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 18% of the nu month's unit sales plus a safety stock of 85 units. The April 30 and May 31 actual inventory levels are consistent w this policy. Selling and administrative expenses for the year are $1.320,000 and are paid evenly throughout the ye in cash. The company's minimum cash balance at month-end is $100,000. This minimum is maintained, If necessar by borrowing cash from the bank. If the balance exceeds $100,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 12% Interest rate. On May 31, the loan balance is $36,000, and the company's cash balance is $100,000. Required: 1. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 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. AZTEC COMPANY Merchandise Purchases Budgets Percent collected in April May June July August Credit sales from: April May June July August Total Amount Collected in June April May July August Credit sales from: $ 510,000 April May June July August 476,000 935,000 765,000 595,000 Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April, May, June, and July. AZTEC COMPANY June July 3,500 4,500 Budgeted Ending Inventory For April, May, June and July April May Next month's budgeted sales (units) 2,800 5,500 Ratio of inventory to future sales 18% 18% Budgeted "base" ending inventory 589 1,075 Budgeted ending inventory (units) 589 1,075 Budgeted ending inventory (units) 1,178 2,150 18% 18% 895 715 715 895 1,790 1.430 Cash payments on product purchases (for June and July) Percent Paid in May June July From purchases in: May June July 216876% 144584% % 351120% 234080% 285120% Amount Paid in Total May June July From purchases in: May June July

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