Do not give image format Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare a cash budget, by month and in total, for the three-month period. Assume the $79,000 loan is made on April 1 and repaidwith interest on June 30.Note: Cash deficiency, repayments and interest should be indicated by a minus sign.Beginning cash balanceAdd receipts:Collections from customersTotal cash availableLess cash disbursements:Merchandise purchasesPayrollLease paymentsAdvertisingEquipment purchasesTotal cash disbursementsExcess (deficiency) of cash available over disbursementsFinancing:BorrowingsRepaymentsInterestPrime ProductsCash BudgetAprilTotal financingEnding cash balance< Required 1MayRequired 2 >JuneQuarter Prime Products hopes to borrow $79,000 on April 1 and repay it plus interest of $1,140 on June 30. The following data are available forthe 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 $16,500. Accounts receivable on April 1 will total $190,400, of which$163,200 will be collected during April and $21,760 will be collected during May. The remainder will be uncollectible.b. The company estimates 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in thesecond month following sale. The other 2% are bad debts that are never collected. Budgeted sales and expenses for the three-month period follow:Sales (all on account)Merchandise purchasesPayrollLease paymentsAdvertisingEquipment purchasesDepreciationApril$ 312,000$ 204,000$ 24,000$ 24,800$ 79,200$ 17, 200Required 1 Required 2c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases duringMarch, which will be paid in April, total $160,000.May$ 428,000$ 162,000$ 24,000$ 24,800$ 79,200$ 17,200Required: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 $79,000 loan is made on April 1 and repaidwith interest on June 30.Total cash collectionsComplete this question by entering your answers in the tabs below.June$ 319,000$ 178,500$ 18,900$ 24,800$74,480$ 78,000$ 17,200Calculate the expected cash collections for April, May, and June, and for the three months in total.Schedule of Expected Cash CollectionsAprilMay< Required 1JuneQuarterRequired 2 >

Cash Budget : The cash budget is an estimate of cash receipts and their payment is composed of four…

Required 1 Required 2 Prepare a cash budget, by month and in total, for the three-month period. Assume the $79,000 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 Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Prime Products Cash Budget April Total financing Ending cash balance < Required 1 May Required 2 > June Quarter