Prime Products hopes to borrow $75,000 on April 1 and repay it plus interest of $1,100...

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Prime Products hopes to borrow $75,000 on April 1 and repay it plus interest of $1,100 on June 30. The following data are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $42,600. Accounts receivable on April 1 will total $184,800, of which $158,400 will be collected during April and $21,120 will be collected during May. The remainder will be uncollectible. b. The company estimates 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% are bad debts that are never collected. Budgeted sales and expenses for the three- month period follow: Sales (all on account) Merchandise purchases Payroll Lease payments April May June $ 522,000 $ 299,000 $ 280,000 $241,000 $ 23,000 $ 170,500 $ 139,500 $ 23,000 $ 23,000 $ 23,000 $ 60,400 $ 60,400 $ 28,000 $ 28,000 Advertising Equipment purchases Depreciation $ 26,600 $ 23,000 $ 78,020 $ 108,000 $ 28,000 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $180,000. Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total. 2. Prepare a cash budget, by month and in total, for the three-month period. Assume the $75,000 loan is made on April 1 and repaid with interest on June 30. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the expected cash collections for April, May, and June, and for the three months in total. Schedule of Expected Cash Collections Total cash collections April May June Quarter 242,400 $ 177,720 $ 402,900 $ 823,020 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $180,000. Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total. 2. Prepare a cash budget, by month and in total, for the three-month period. Assume the $75,000 loan is made on April 1 and repaid with interest on June 30. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a cash budget, by month and in total, for the three-month period. Assume the $75,000 loan is made on April 1 and repaid with interest on June 30. Note: Cash deficiency, repayments and interest should be indicated by a minus sign. Beginning cash balance Add receipts: Collections from customers Total cash available Less cash disbursements: Merchandise purchases Payroll Lease payments Advertising Equipment purchases Total cash disbursements Prime Products Cash Budget April May June Quarter $ 42,600 Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing Ending cash balance 242,400 177,720 402,900 823,020 285,000 177,720 402,900 823,020 241,000 170,500 139,500) 551,000 23,000 23,000 26,600 72,600 23,000 23,000 23,000 69,000 60,400 60,400 78,020 144,820 108,000 108,000 347,400 276,900 375,120 945,420 (62,400) (99,180) 27,780 (122,400) 75,000 75,000 (75,000) (1,100) 75,000 (76,100) 75,000 $ 12,600 $ (99,180) $ (48,320) $ (47,400) Required 1 Required 2 Prime Products hopes to borrow $75,000 on April 1 and repay it plus interest of $1,100 on June 30. The following data are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $42,600. Accounts receivable on April 1 will total $184,800, of which $158,400 will be collected during April and $21,120 will be collected during May. The remainder will be uncollectible. b. The company estimates 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% are bad debts that are never collected. Budgeted sales and expenses for the three- month period follow: Sales (all on account) Merchandise purchases Payroll Lease payments April May June $ 522,000 $ 299,000 $ 280,000 $241,000 $ 23,000 $ 170,500 $ 139,500 $ 23,000 $ 23,000 $ 23,000 $ 60,400 $ 60,400 $ 28,000 $ 28,000 Advertising Equipment purchases Depreciation $ 26,600 $ 23,000 $ 78,020 $ 108,000 $ 28,000 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $180,000. Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total. 2. Prepare a cash budget, by month and in total, for the three-month period. Assume the $75,000 loan is made on April 1 and repaid with interest on June 30. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the expected cash collections for April, May, and June, and for the three months in total. Schedule of Expected Cash Collections Total cash collections April May June Quarter 242,400 $ 177,720 $ 402,900 $ 823,020 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $180,000. Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total. 2. Prepare a cash budget, by month and in total, for the three-month period. Assume the $75,000 loan is made on April 1 and repaid with interest on June 30. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a cash budget, by month and in total, for the three-month period. Assume the $75,000 loan is made on April 1 and repaid with interest on June 30. Note: Cash deficiency, repayments and interest should be indicated by a minus sign. Beginning cash balance Add receipts: Collections from customers Total cash available Less cash disbursements: Merchandise purchases Payroll Lease payments Advertising Equipment purchases Total cash disbursements Prime Products Cash Budget April May June Quarter $ 42,600 Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing Ending cash balance 242,400 177,720 402,900 823,020 285,000 177,720 402,900 823,020 241,000 170,500 139,500) 551,000 23,000 23,000 26,600 72,600 23,000 23,000 23,000 69,000 60,400 60,400 78,020 144,820 108,000 108,000 347,400 276,900 375,120 945,420 (62,400) (99,180) 27,780 (122,400) 75,000 75,000 (75,000) (1,100) 75,000 (76,100) 75,000 $ 12,600 $ (99,180) $ (48,320) $ (47,400) Required 1 Required 2