2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for July, August, and September. 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 occur during August. The following information has been assembled to assist in preparing a cash budget for the quarter a. Budgeted monthly absoiption costing income statements for July to October are as follows: 'Includes $2.650 depreciotion eachmonth. b. Sales are 20% for cash and 80% on ciedit c. Credit soles are collected over a three-month period, with 10% collected in the month of sale, 70% in the month following sate, and 20% in the second month following sale May sales totalled $43,000, and June sales totalled $49.000 d. Inventory purchases ore poid for within 15 days, Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% ate paid in the following month Accounts payable for inventory purchases at June 30 total 518,200 e. The company maintains its ending inventory levels at 75% of the cost of the merchandise to be sold in the following month the merchandise inventory at June 30 is 524,500 t Land costing $5150 will be purchased in July. 9. Dividends of 51650 will be declared and pasd in September h. The cosh balance on June 30 is $9300, the company must maintain a cash balance of at least this amount at the end of each month 1. The company has an agreement with a local bank that allows it to bortow in inciements of 51,000 at the beginning of each month. up to a total loan batance of $40,000. The interest rate on these loars is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, cepay the foan plus accumulated interest at the end of the quarter