Exercise 7.14A (Algo) Determining amount to borrow and pro forma statement balances LO 7.5 Lols Brago owns a small restaurant in Boston, Ms. Brago provided her accountant with the following summary information regarding expectations for the month of June. The balance in accounts receivable as of May 31 is 553.000, Budgeted cash and credit sales for June aro 5141,000 and $588,000, respectively Credit sales are made through Visa and MasterCard and are collected rapidly. Skty five porcent of credit sales is collected in the month of sale, and the remainder is collected in the following month, Ms Brogg's suppliers do not extend credit. Consequently, she pays suppliers on the last day of the month. Cash payments for June are expected to be $717,000. Ms. Bragg has a line of credit that enables the restaurant to borrow funds on demand; however, they must be borrowed on the last day of the month, Interest is paid in cash also on the last day of the month Ms. Brago desires to maintain a $33.000 cash balance before the Interest payment. Her annual interest rate is 10 percent Required a. Compute the amount of funds Ms Bragg needs to borrow for June b. Determine the amount of interest expense the restaurant will report on the June proforma income statement What amount will the restaurant report as interest expense on the July pro forma income statement (Round your answers to 2 decimal places.) Amount to be borrowed Interests (June) Inexpens (ul)