Need help with the steps/breakdown on solving the below problem;

Aztec Company sells its product for $170 per unit. Its actual and projected sales follow.

Units Dollars

April (actual) 6,000 $1,020,000

May (actual) 3,000 510,000

June (budgeted) 6,000 1,020,000

July (budgeted) 6,500 1,105,000

August (budgeted) 3,600 612,000

All sales are on credit. Recent experience shows that 28% of credit sales is collected in the month of the sale, 42% in the month after the sale, 26% in the second month after the sale, and 4% proves to be uncollectible. The products purchase price is $110 per unit. All purchases are payable within 11 days. Thus, 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 20% of the next months unit sales plus a safety stock of 110 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,680,000 and are paid evenly throughout the year in cash. The companys 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 annual 12% interest rate. On May 31, the loan balance is $32,000, and the companys cash balance is $130,000.

Prepare a table that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July.

Percent Collected in

		April	May	June	July	August
Credit sales from:
April
May
June
July
August

Amount Collected in

	Total	April	May	June	July	August
Credit Sales from:
April
May
June
July
August

2. Prepare a table that shows the computation of budgeted ending inventories (in units) for April, May, June, and July.

AZTE COMPANY

Budgeted Ending Inventory

For April, May, June, and July

	April	May	June	July
Next month's Budgeted sales (units)	?	?	?	?
Ratio of inventory to future sales	?	?	?	?
Budgeted "base" ending inventory	?	?	?	?
?	?	?	?	?
?	?	?	?	?

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

For May, June, and July

	May	June	July
?	?	?	?
?	?	?	?
Required units of available merchanise
?	?	?	?
Budgeted purchases (units)	?	?	?
?	?
Budgeted cost of merchandise purchases	?	?	?

4. Prepare a table showing the computation of cash payments on product purchases for June and July.

Cash payments on product purchases (for June and July)

Percent Paid in

		May	June	July
From Purchases in:
May
June
July

Amount Paid in

	Total	May	June	July
From purchase in:
May
June
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. (Do not round intermediate calculations.)

AZTEC COMPANY

Cash Budget

June and July

	June	July
Beginning cash balance	?	?
?	?	?
Total cash available
Cash disbursement
?	?	?
?	?	?
?	?	?
?	?	?
Total cash disbursements
Preliminary cash balance	?	?
?	?	?
Ending cash balance	?	?

Loan balance

	June	July
Loan balance-Beginning of month	?
Additional loan (loan repayment)	?
Loan balance-End of month	?	?