Chapter 8 Homework Help Save & Ex Submit Check my work 6 Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter. The company usualy has to borrow money during this quarter to support peak sales of lawn care e equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter 2 a. Budgeted monthly absorption costing income statements for April-July are: April May June 5.810,000 $350,000 350.000 560.000 567,000 665.000 455,000 292.000 2009 205000 100.000 160.000 Sot Sales cost of goods sold Cromargin selling and sinistrative expenses Sellingen Administrative expense Total selling and interative expenses Net operatin e Includes $37.000 of depreciation each month 95,000 114.000 76,000 56.000 32.00 76,200 07.000 >>.000 147504 10200 12.000 109.000 95.50 16.500 72.000 59.000 fo 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: 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 $305.000, and March's sales totaled $320,000 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 $146.300 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 $113.400. Dividends of $44,000 will be declared and paid in April g. Land costing $56,000 will be purchased for cash in May. h. The cash balance at March 31 is $66.000, the company must maintain a cash balance of at least $40.000 at the end of each month, The company has an agreement with a local bank that allows the company to borrow in increments of $1000 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 w 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 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 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 schedule of expected cash collections for April, May, And June, and for the quarter in total. Schedule of Expected Cash Collections April May June Quarter Cash sales Sales on account: February March April May June Total cash collections Required Required 2A > Check my work 6 end of the quarter 2 points 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 quartet BOR Complete this question by entering your answers in the tabs below. O Pert Required 1 Required 2A Required 28 required Prepare the following for merchandise inventory, a merchandise purchases budget for Apr May, and June. Merchandise Purchases Budget April May June Herences Total needs Required inventory purchases .ens mutation.com/index.com 22. # Chapter Ho Check 6 end of the quarter 2 Required: 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 marchandise purchases budget for Apr May, and une. A schedule of expected cash disbursements for merchandise purchases for Aont. May, and Auneand for the quarters in total 3 Prepare a cash budget for April May and junews well as in total for the quarter DOO Complete this question by entering your answers in the tabs below. 1 Hured Ared 2 red Prepare the following for merchandise inventory a schedule of expected cash disbursements for the purchases for April, Hay, and lune, and for the water in total, Schedule of lected Cash for Merchandise Apes May lo Apr purch May pre June purchase Themen