C Warning! Due t X D2L McGraw-Hill Cc X M Question 15 - ( X D2L Grades - 23W X C The direct labo X C Silver Company X C Garden Sales, I X + V X -> C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%... *LOR . . . Chapter 8 Practice i Saved Help Save & Exit Submit Check my work 15 Garden Sales, Inc., 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: 5 points a. Budgeted monthly absorption costing income statements for April-July are: eBook April May June July Hint Sales $ 590, 000 $ 790, 000 $ 490, 000 $ 390,000 Cost of goods sold 413, 000 553,000 343,000 273,000 Print Gross margin 177, 000 237 , 000 147 , 000 117, 000 Selling and administrative expenses: References Selling expense 80, 000 99, 000 60, 000 39, 000 Administrative expense* 44, 500 60,000 37,400 37,000 Total selling and administrative expenses 124, 500 159, 000 97, 400 76, 000 Net operating income $ 52,500 $ 78,000 $ 49,600 $ 41,000 *Includes $22,000 of depreciation each month. 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 $205,000, and March's sales totaled $245,000. 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 $109,900. Each month's . aNIIal in0 / ofthe mold in the fallaising . The Mc Graw Type here to search ENG 05:53 PM 3.C Sunny INTL 02/04/2023C Warning! Di X D2L McGraw-Hil X M Question 1! X D2L Grades - 23 X C The direct |: X C Silver Comp X C Garden Sale X Homework X + V X -> C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%... *LOR . . . Chapter 8 Practice i Saved Help Save & Exit Submit Check my work 15 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 $109,900. 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 $82,600. 5 f. Dividends of $29,000 will be declared and paid in April. points g. Land costing $37,000 will be purchased for cash in May. h. The cash balance at March 31 is $51,000; the company must maintain a cash balance of at least $40,000 at the end of each month. i. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of eBook 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 Hint 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. Print References 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 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 a merchandise purchases budget for April, May, and June. Mc Graw Type here to search O ENG 05:54 PM 3.C Sunny INTL 02/04/2023C Warning! Di X D2L McGraw-Hil X M Question 1! X D2L Grades - 23 X C The direct l X C Silver Comp X C Garden Sale X Homework X + V X -> C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%... *LOR . . . Chapter 8 Practice i Saved Help Save & Exit Submit Check my work 15 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 April, May, and June as well as in total for the quarter. 5 points Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2A Required 2B Required 3 Hint Print Prepare a merchandise purchases budget for April, May, and June. References Merchandise Purchases Budget April May June Budgeted cost of goods sold $ 413,000 $ 553,000 $ 343,000 Add: Desired ending merchandise inventory Total needs 413,000 553,000 343,000 Less: Beginning merchandise inventory Required inventory purchases $ 413,000 $ 553,000 $ 343,000 Mc Graw Type here to search in ENG 05:54 PM 3.C Sunny INTL 02/04/2023C Warning! Di X D2L McGraw-Hil X M Question 1! X D2L Grades - 23 X C The direct l X C Silver Comp X C Garden Sale X Homework X + V X -> C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%... *LOR . . . Chapter 8 Practice i Saved Help Save & Exit Submit Check my work 15 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 April, May, and June as well as in total for the quarter. 5 points Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2A Required 2B Required 3 Hint Print Prepare a schedule of expected cash disbursements for merchandise purchases for April, May, and June, and for the quarter in total. References Schedule of Expected Cash Disbursements for Merchandise Purchases April May June Quarter $ April purchases 0 May purchases 0 June purchases Total cash disbursements $ o $ o $ 0 $ Mc Graw Type here to search O ENG 05:55 PM 3.C Sunny INTL 02/04/2023C Warning! Di X D2L McGraw-Hil X M Question 1! X D2L Grades - 23 X C The direct |: X C Silver Comp X C Garden Sale X Homework X + V X -> C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%... *LOR . . . Chapter 8 Practice i Saved Help Save & Exit Submit Check my work 15 Prepare a cash budget for April, May, and June as well as in total for the quarter. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Garden Sales, Inc. 5 Cash Budget points For the Quarter Ended June 30 April May June Quarter eBook Beginning cash balance Hint Add collections from customers Total cash available 0 0 0 Print Less cash disbursements: References Purchases for inventory Selling expenses Administrative expenses Land purchases Dividends paid Total cash disbursements 0 0 0 Excess (deficiency) of cash available over disbursements 0 Financing: Borrowings Repayment Interest Mc Graw Hill ENG 05:55 PM Type here to search 3.C Sunny INTL 02/04/2023