5 560,000 May $760,000 $460,000 Cost of goods sold Gro margin Selling and administrative expenses Selling expe Administrative expans Total selling and administrative expens Set operating income 322.000 149-009 532.000 228,000 323.999 139,000 July $360,000 252,000 108.000 76,000 16,000 57,000 43,000 37,400 35.500 36,000 24,000 115.000 SPATH $ 49,000 $74,400 545,400 $ 38,000 "Includes $18,000 of depreciation each month Required b. Sales are 20% for cash and 80% on account c. Sales on account are collected over a three-month period with 10% collected in the month of sale; 80% collected in the first month following the month of sale; and the remaining 10% collected in the second month following the month of sale. February's sales totaled $175,000, and March's sales totaled $230,000 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 at March 31 for inventory purchases during March total $103,600. e. Each month's 9. inventory at Mng inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise at March 31 is $78,400. Dividends of $26,000 will be declared and paid in April Land costing $34,000 will be purchased for cash in May. h. The cash balance at March 31 is $48,000: the company must maintain a cash balance of at least $40,000 at the end of each month The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $200,000. 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. 1. Prepare a schedule of expected cash collections for April May and June, and for the quaterial 2. Prepare the following formatory a. A merchandise purchases budget for April, Max and June b. A schedule of expected cash disbursements for merchandise purchases for Apr, May, and June, and for the quarter in total 3. Prepare a cash budget for April May and June as well as in total for the quarter Complete this question by entering your answers in the tablew Prepare a schedule of expected cash collections for Apr, May, and June, and for the quarter into C February Mach May Quarter Required 1 Required 24 Required 28 Required] Prepare the following for merchandise inventory, a merchandise purchases budget for April, May, and June M Required inventory purchase Required Required 24 Required 28 Required 3 Prepare the following for merchandise inventory, a schedule of expected cash disbursements for merchandise purchases for April, Max, and June, and for the quarter in total Schedule of Expected Cash for Merchandise Purchases Apr purch Total cash dabursement Apr Quarter Praca budget for April, May, das intital for the quarta deficiency, repayments and intel Total cash deburseme N: My Api May