8 Check my work 4 ts ipped Garden Sales, Incorporated, sells garden supplies. Management is planning...

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8 Check my work 4 ts ipped Garden Sales, Incorporated, sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for April-July are: eBook Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense Total selling and administrative expenses Net operating income "Includes $16,000 of depreciation each month b. Sales are 20% for cash and 80% on account. April $ 460,000 322,000 May $990,000 693,000 June $440,000 July 138,000 297,000 308,000 132,000 $ 340,000 238,000 102,000 89,000 94,000 55,000 34,000 42,000 56,000 34,400 32,000 131,000 150,000 89,400 66,000 $ 7,000 $ 147,000 $ 42,600 $ 36,000 c. Sales on account are collected over a three-month period with 10% collected in the month of sale: 70% collected in the first month following the month of sale, and the remaining 20% collected in the second month following the month of sale. February's sales totaled $160,000, and March's sales totaled $220,000. 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 Marchi total $93,800 e. Each month's ending inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise inventory at March 31 is $64,400 8 Check my work 4 ts ipped Garden Sales, Incorporated, sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for April-July are: eBook Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense Total selling and administrative expenses Net operating income "Includes $16,000 of depreciation each month b. Sales are 20% for cash and 80% on account. April $ 460,000 322,000 May $990,000 693,000 June $440,000 July 138,000 297,000 308,000 132,000 $ 340,000 238,000 102,000 89,000 94,000 55,000 34,000 42,000 56,000 34,400 32,000 131,000 150,000 89,400 66,000 $ 7,000 $ 147,000 $ 42,600 $ 36,000 c. Sales on account are collected over a three-month period with 10% collected in the month of sale: 70% collected in the first month following the month of sale, and the remaining 20% collected in the second month following the month of sale. February's sales totaled $160,000, and March's sales totaled $220,000. 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 Marchi total $93,800 e. Each month's ending inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise inventory at March 31 is $64,400