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 informatiorn has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for April-July are April May June July Sales Cost of goods sold Gross margin Selling and administrative expenses: $500,000 $1,03e,000 $480,000 $380,000 721,000 336,000 266,000 309,000 144,000 114,000 350,000 150,000 Selling expense 98,000 97,000 44,000 59,000 38,000 59,200 36, 800 36,000 Administrative expense Total selling and administrative expenses Net operating income 141,000 157,200 95, 800 74,000 $ 9,000 151,800 $ 48,200 $ 40,000 "Includes $21,000 of depreciation each month