Check my v Garden Sales, Inc. sells garden supplies. Management is planning its cash needs for the second quarter. The following information has been assembled to assist in preparing a cash budget for the quarter. a. Budgeted monthly income statements for April to July are as follows: Cost April $500,000 348,000 152,000 May $740,000 516,000 224,000 $420,000 294,000 126,000 July $340,000 238,000 102,wed -59:41 Sales goods sold Gross margin Less: Operating expenses: Selling expense Administrative expense* Total operating expenses Net income bok 67,200 38,000 105, 200 $ 46,800 100,000 42,200 142,200 $ 81,800 51,600 34,800 86,400 39,600 42,800 32,400 75,200 $ 26,800 int ances *Includes $20,000 in depreciation each month. b. Sales are 20% for cash and 80% on account. c Sales on account are collected over a three-month period in the following ratio: 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 totalled $180,000, and March's sales totalled $260,000. 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% are paid in the following month. Accounts payable at March 31 for inventory purchases during March total $103,200. e. At the end of each month, inventory must be on hand equal to 20% of the cost of the merchandise to be sold in the following month. The merchandise inventory at March 31 is $69,600. f. Dividends of $40,600 will be declared and paid in April. g. Equipment costing $13,800 will be purchased for cash in May. h. The cash balance at March 31 is $43,600; the company must maintain a cash balance of at least $31.000 at all times. L. The company can borrow from its bank, as needed to bolster the cash account. Borrowings and repayments must be in multiples of $500 Interest is due only when principal is rennid and is calculated on the amount of repayment for the duration of the time money Prev 6 of 8 !!! Next > 6 20 points 2. Prepare the following for merchandise inventory: X 02:59:06 a. An inventory purchases budget for each of the months April, May, and June. eBook GARDEN SALES, INC. Inventory Purchases Budget April Print May June References Total needs