b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total. Janus Procucts, inc is a merchundising company that sels binders, papec and other school supplies. The company is planning its cash neecs for the thind quanee in the pait Janus Products has had to borrow money during the third quarter to support peak saies of backsto school materiaks, which occur during August. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budpefed mortily absorption costing income statements for July to October are as follow: Includes $2.650 depreciution each month: b. Sales are 20a for cash and 80% on crede. c. Credit sales are collected over a thee-month period, with 10s coliected in the month of sale, 703 in the month following sale, and 20% in the second month folowing sale, May Lales totalled 541000 and Jurie sales fotalied 549000 . d. Invertory purchases are puld for wimin 15 days. Therefore, 507 s of months inventory purchases are paid for in the month of purchase. The remaining 50% are peid in the following month. Accounts payable for inventory purchases at June 30 total $18.200 e. The company maintains ifs ending inventary levels at 75% of the cost of the merchandise to be sold in the following month. The merchandise inventory at June 30 is 124.500 1. Land costing 55.150 will be purchased in July. 9. Dividends of $1,650 will be declared and pald in Septembec h. The cash bstance on June 30 is 59300 the company must maintain a cash balance af at leat this amount at the end of each morth. 1. The company has an agreement with a local bank that afiows it to boriow in increments of $1.000 at the beginning of each month up to a tcital ioan balance of $40,000. The irterest rate on these loans is 1x per month and for simplicity we will assume that inderest is not compounded. The compeny would, es laras it is able, repey the loan plus accumulated interest at ihe end of the quarter