Sweeny Co. is preparing a cash budget for the second quarter of the coming year. The following data have been foretasted: 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 1,500 1,500 Depreciation 7,500 7,500 End of April balances: Cash 40,000 Bank loan payable 16,000 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 $40,000 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.

Question: Prepare the company's cash budget for May. Show the ending loan balance at May 31.