Billy Yang, Inc. is preparing a cash budget for the second quarter of the coming year. The following data have been forecasted: April May Sales $150,000 $157,500 Merchandise purchases 107,000 112,400 Operating expenses: Payroll 13,600 14,280 Advertising 5,400 5,700 Rent 2,600 2,600 Depreciation 7,500 7,500 End of April balances: Cash 30,000 Bank loan payable 26,000 Additional data: (1) Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $125,000. (2) Purchases are all on credit, with 40% paid in the month of purchase and the balance paid in the following month. (3) Operating expenses are paid in the month they are incurred. (4) A minimum cash balance of $25,000 is required at the end of each month. (5) Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made whenever excess cash is available. Prepare the company's cash budget for the month of May. Show the ending loan balance at May 31. You must show your work for credit. You must use the template on the next page. (8 points) Checks: Preliminary cash balance should be a number between $40,000 and $45,000. Loan balance at end of month should be a number between $7,000 and $8,000.