2 Janus Products, Inc., is a merchandising company that sells binders, paper, and other school supplies. The company is planning its cash needs for the third quarter. In the past, Janus Products has had to borrow money during the third quarter to support peak sales of back-to-school materials, which cccur during August. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for July-October are as follows: July August September October 34,000 64,000 54,000 $ 40,000 22,000 40,000 24000 26,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: 12,000 24,000 30,000 14,000 Selling expense Administrative expense 5,200 10,200 4,200 6,200 7,200 6,700 5,300 4,700 9,400 16,400 12,500 11.400 $ 2,600 7,600 17,500 S 2,600 Total selling and administrative expenses Net operating income Includes $1,200 depreciation each month. b. Sales are 25% for cash and 75% on credit. C. Credit sales are collected over a three-month period with 10% collected in the month of sale, 70% in the month following sale, and 20% in the second month following sale. May sales totaled $27,000, and June sales totaled $33,000. d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable for inventory purchases at June 30 total $10,700. e. The company maintains its ending inventory levels at 70% of the cost of the merchandise to be sold in the following month. The merchandise inventory at June 30 is $15,400. f. Land costing $3,700 will be purchased in July g. Dividends of $1,300 will be declared and paid in September h. The cash balance on June 30 is $5,000; the company must maintain a cash balance of at least this amount at the end of each month. i. The company has an agreement with a local bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $40,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter Required: 1. Prepare a schedule of expected cash collections for July, August, and September and for the quarter in total. (Leave no cells blank-be certain to enter "" wherever required. Do not round intermediate calculations. Omit the "$" sign in your response.) Schedule of Expected Cash Collections as it is able, repay the loan plus accumulated interest at the end of the quarter. 1. Prepare a schedule of expected cash collections for July, August, and September and for the quarter in total. (Leave no cells blank-be certain to enter "0" wherever required. Do not round intermediate calculations. Omit the "S" sign in your response.) Schedule of Expected Cash Collections Cash sales Sales on account: May June July August Total cash collections 2. Prepare the following for merchandise inventory a. A merchandise purchases budget for July, August, and September. (Input all amounts as positive values. Do not round intermediate calculations. Omit the "$" sign in your responso.) Merchandise Purchases Budget August Budgeted cost of goods sold (Click to select(Click to select) Add (Click to select(ck to select) Required inventory purchases b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total. (Leave no cells blank-be certain to enter "O" wherever required. Omit the "$" sign in your response.) Schedule of Expected Cash Disbursements Accounts payable, June 30 Required: 1. Prepare a schedule of expected cash collections for July, August, and September and for the quarter in total. (Leave no cells blank-be certain to enter "0" wherever required. Do not round intermediate calculations. Omit the "$ sign in your response.) Schedule of Expected Cash Collections July August Quarter Cash sales Sales on account May June July August Total cash collections 2. Prepare the following for merchandise inventory a. Amerchandise purchases budget for July, August, and September. (Input all amounts as positive values. Do not round intermediate calculations. Omit the "$" sign in your response.) Merchandise Purchases Budget July August Budgeted cost of goods sold (Click to select) Click to select) Total needs (Click to select)(Click to select) Ending inventory Required inventory p. Begining inventory b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total. (Leave no cells blank be certain to enter "O" wherever required. Omit the "$" sign in your response.) Schedule of Expected Cash Disbursements August Quarter Accounts payable, June 30 b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total. (Leave no cells blank be certain to enter "O" wherever re quired. Omit the "S" sign in your response.) Schedule of Expected Cash Disbursements July August Quarter Accounts payable, June 30 July purchases August purchases Total cash disbursements 3. Prepare a cash budget for July, August, and September and for the quarter in total. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign.Total Financing should be indicated with a minus sign when the company is repaying amounts that were previously borrowed. Selling and Administrative expenses are paid in the month in which the expenses are incurred. Leave no cells blank-be certain to enter "0" wherever required. Omit the "$" sign in your response.) Janus Products, Inc For the Quarter Ended September 30 July Quarter Cash balance, beginning Add colections from sales Total cash available Less disbursements: For selling expenses For administrative expenses For land For dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing 3. Prepare a cash budget for July, August, and September and for the quarter in total. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Total Financing should be indicated with a minus sign when the company is repaying amounts that were previously borrowed. Selling and Administrative expenses are paid in the month in which the expenses are incurred. Leave no cells blank -be certain to enter O" wherever required. Omit the "" sign in your response.) Janus Products, Inc. For the Quarter Ended September 30 July September Quarter Cash balance, beginning Add collections from sales Total cash available Less disbursements: For selling expenses For administrative expenses For land For dividends Excess (deficiency) of cash available over disbursements Financing: Interest Total financing Cash balance, ending