Prime Products hopes to borrow $69,000 on April 1 and repay it plus interest of $1,040 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 $22,200. Accounts receivable on April 1 will total $176,400, of which $151,200 will be collected during April and $20,160 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 Advertising Equipment purchases Depreciation April $ 438,000 $ 291,000 $ 27,400 $ 28,600 $70,800 $ 19,000 Required 1 Required 2 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 $180,500. 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 $69,000 loan is made on April 1 and repaid with interest on June 30. May $ 480,000 $ 183,500 $ 27,400 $28,600 $ 70,800 $ 19,000 Complete this question by entering your answers in the tabs below. Total cash collections June $ 261,000 $ 136,500 $ 26,100 $ 28,600 $ 75,460 $ 67,500 $ 19,000 Calculate the expected cash collections for April, May, and June, and for the three months in total. Schedule of Expected Cash Collections April May < Required 1 June Quarter Required 2 >