a Budgeted monthly absorption costing income statements for Apri-July are: April May $ 55e.eee $ 750.ee 185.000 525 de 16.ee 225 de Jun $ 450.00 315, ee 135,00 Duly $ 5e, de 245290 125 203 Sales Cost of goods sold Grus mer Selling and administrative expenses: Selling expense Administrative expense Total selling and administrative expenses Net derating incore 95, de 75. 42.ee 117.see S 4752 56. Bee 151 Bee 73 28 56.000 15.00 91 e Lg 35), evde 33,20 68, ege 37.ee S 9 includes $17.000 of depreciation each month COS 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 $165.000, and March's sales totales $225.000. d. Inventory purchases are paid for within 15 days. Therefore. 50% of a month is 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 $101.500 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 $77.000 Dividends of $25.000 will be declared and paid in April 9. Land costing $83.000 will be purchased for cash in May h. The cash balance at March 31 is $47.000: the company must maintain a cash ba ance of at least $40.000 at the end of each month. 1. 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 15 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 Apr May, and June, and for the quarter In total 2. Prepare the following for merchandise Inventory a! A merchandise purchases budget for April May and June b. A schedule of expected cash disbursements for merchandise purchases for April May, and Jure, and for the quarter in total. 3. Prepare a cash buoget for April May. and June as well as in total for the quarter Complete this question by entering your answers in the tabs below. Red Rez Red 28 Red Prepare a schedule of enected cash collections for April May and June, and for the quarter in total. edule of Expected cash April cions Wuine Quarter 5 0 0 Dash sales Sales on account February Maron Apel May Hune Teta das collection IS US OS OS Req2A >