a Budgeted monthly absorption costing income statements for ApriJuly are nell 5.610,000 $27.00 100.000 5. 24. 5.510,000 12.000 July $410,000 207.000 Sales Cost of sold Gross margin Selling and administrative expenses Selling pen instrative pense Totaling and administratives Net operating Income "Includes $23.000 of depreciation each month 100.000 39,00 1,000 4. 12000 556.500 160.00 379.200 M1,000 20.000 99.000 $ 54.000 5.43 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. 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 $220.000, and March's sales totaled $250,000 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 $112700 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 $85,400 1 Dividends of $30,000 will be declared and paid in April g Land costing $38,000 will be purchased for cash in May h. The cash balance at March 31 is 552,000, the company must maintain a cash balance 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 1% per mhth and for simplicity we wil 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 Rourer Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required a Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total. Schedule of Expected Canh Collections April May June Quarter 122,000 $ 160,000 $ 102,000 $ 384,000 Cash sales Sales on account: February March April May June Total cash collections 35,200 140,000 48,800 40,000 341,600 0 35,200 0 180.000 97,600 488,000 128,000 192,000 40,800 40,800 368 400 $ 1,320,000 0 64,000 0 0 346,000 $ 605,600 $ Candied Required 2A > UTVID UTOSESTE I way, and June, and 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 tabs below. Required 1 Required 2A Required 28 Required 3 Prepare the following for merchandise inventory, a merchandise purchases budget for April, May, and June. May Merchandise Purchases Budget April June Budgeted cost of goods sold $ 427,000 $ 560,000 $ 357,000 Add: Desired ending merchandise inventory Total needs 427,000 560,000 357.000 Less: Beginning merchandise inventory Required inventory purchases $ 427,000 $ 560,000 S 357,000 Class online test question Coved POCHY VI TILLERS Vercury a. A merchandise purchases budget for April, May, and June. b. A schedule of expected cash disbursements for merchandise purchases for April May, and June, and for the quarte 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 tabs below. Required 1 Required 2A Required 2B Required 3 Prepare the following for merchandise inventory, a schedule of expected cash disbursements for merchandise purchases April, May, and June, and for the quarter in total. Schedule of Expected Cash Disbursements for Merchandise Purchases April May June Quarter $ 0 0 0 April purchases May purchases June purchases Total cash disbursements 0 $ 0 $ 0 $ 0 $ 0 Required 1 Required 2A Required 20 Required 3 Prepare a cash budget for April, May, and Juner as well as in total for the quarter. (Cash deficiency, repayments and interest should be indicated by a minus sign.) May June Quarton 0 Garden Sales, Incorporated Cashfludget For the Quarter Ended June 30 April Beginning cash balance Add collections from customers Total cash available 0 Less cash disbursements Purchases for inventory Selling expenses Administrative expenses Land purchases Dividends pald Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayment 0 0 0 0 0 0 Prex 1 of 1 Next