The president of the retaller Prime Products has just approached the company's bank with a...
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The president of the retaller Prime Products has just approached the company's bank with a request for a $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: points Skipped a On April the start of the loan period, the cash balance will be $ Accounts recelvable on April will total $ of which $ will be collected during April and $ will be collected during May. The remainder will be uncollectible. b Past experlence shows that of a month's sales are collected in the month of sale, in the month following sale, and in the second month following sale. The other is bad debts that are never collected. Budgeted sales and expenses for the threemonth perlod follow: tableSales all on accountApril,May,JuneMerchandise purchases,$$$ 
The president of the retaller Prime Products has just approached the company's bank with a request for a $day loan. The purpose of the loan is to assist the company in acquiring inventorles. Because the company has had some difficulty in paying off its
loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are avallable for the months April through June, during which the loan will be used:
points
Skipped
a On April the start of the loan period, the cash balance will be $ Accounts recelvable on April will total $ of which $ will be collected during April and $ will be collected during May. The remainder will be uncollectible.
b Past experlence shows that of a month's sales are collected in the month of sale, in the month following sale, and in the second month following sale. The other is bad debts that are never collected. Budgeted sales and expenses for the threemonth perlod follow:
tableSales all on accountApril,May,JuneMerchandise purchases,$$$
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