Garden Sales, Inc. sells garden supplies. Management is planning its cash needs for the upcoming second quarter (April, May, June).

The following information has been assembled to assist in preparing a cash flow budget for the quarter:

1. Budgeted monthly income statements for April to July are as follows:

	April		May		June		July
Sales	$	480,000			$	680,000			$	400,000			$	320,000
Cost of goods sold		336,000				476,000				280,000				224,000
Gross margin		144,000				204,000				120,000				96,000
Less: Operating expenses:
Selling expense		63,200				96,000				49,600				40,800
Administrative expense*		36,000				41,600				32,800				30,400
Total operating expenses		99,200				137,600				82,400				71,200
Net income	$	44,800			$	66,400			$	37,600			$	24,800

*Administrative expenses includes $5,000 in depreciation expense each month.

1. Sales each month are 20% cash sales (collected at the moment of the sale), and 80% on account.
2. 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 month following the month of sale, and the remaining 20% collected two months after the sale. Februarys total sales were $260,000, and Marchs sales totalled $340,000.
3. Cost of Goods Sold (which are 70% of each months Sales) are paid for within 15 days. Therefore, 50% of a months COGS purchases are paid for in the month incurred. The remaining 50% are paid in the following month. March COGS were $238,000.
4. Eighty percent (80%) of Selling Expenses are paid for in the month incurred, and the remainder in the following month. March Selling Expense was $75,000.
5. Administrative expenses (net of Depreciation) are paid in the month incurred.
6. Equipment costing $45,000 will be purchased for cash in June.
7. The cash balance at March 31 is $41,600; the company must maintain a cash balance of at least $32,000 at all times.
8. The company can borrow from its bank, as needed, to bolster the cash account. Interest is paid monthly on any balance owing from a previous month. The annual interest rate is 12%.

Prepare a cash budget for the second quarter, by month. Show borrowings from the companys bank and repayments to the bank, as needed, to maintain the minimum cash balance. Ensure that your COGS amounts are based on being 70% of revenues. Your budget needs to automatically calculate amounts borrowed, repaid and interest repaid each month as applicable, based on assumptions changing.