Aztec Company sells its product for $160 per unit. Its actual and projected sales

Aztec Company sells its product for $160 per unit. Its actual and projected sales follow.
Units Dollars
April (actual) 6,500 $1,040,000
May (actual) 2,200 352,000
June (budgeted) 8,000 1,280,000
July (budgeted) 5,000 800,000
August (budgeted) 3,900 624,000
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, 29% in the second month after the sale, and 1% proves to be uncollectible. The product’s 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 24% of the next month’s unit sales plus a safety stock of 135 units. The April 30 and May 31 actual inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,992,000 and are paid evenly throughout the year in cash. The company’s minimum cash balance at month-end is $120,000. This minimum is maintained, if necessary, by borrowing cash from the bank. If the balance exceeds $120,000, the company repays as much of the loan as it can without going below the minimum. This type of loan carries an annual 11% interest rate. On May 31, the loan balance is $46,500, and the company’s cash balance is $120,000. (Round amounts to the nearest dollar.)
rev: 11_19_2013_QC_40413
1.value:
5.00 points
Required:
1.
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.
Credit sales from Percent collected In
April April May June July August
May
June
July
August