a. Budgeted monthly absorption costing income statements for April-July are: b. Sales are 20% for cast and 80% on account. c. Sales on account are collected over a three month period with 10% collected in the month of sale: 700 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 $260.000, and March's sales totaled $275,000. d. Inventory purchases are paid for within 15 days. Therelore, 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 $124,600 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 $95,200. t. Dividends of $35,000 will be declared and pald in Apill. 9. Land costing $43,000 will be purchased for cash in May. h. The cash balance at March 31 is $57,000, 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 month and for simplicity we will assume that interest is not compounded The company would, as far as it is able, repiy the loan plus accumulated interest at the end of the quarter. Required: 1. Prepare a schedule of expected cash collections for April, 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 June, and for the quarter in total. 3. Prepare a cash budget for Aprii. May, and June as well as in total for the quarter. Complete this question by entering your answers in the tabs below. Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total