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:

Most of it is correct. Just need help on a few parts in this problem.

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: a. Budgeted monthly absorption costing income statements for April-July are $ 710,000 880,000 $590,000 490,000 343,000 497,000 616,000 413,000 Cost of goods sold Gross margin Selling and administrative expenses Selling expense Administrative expense 89,000 49,500 138,500 108,000 67,200 175,200 43,400 113,400 47,000 96,000 Total selling and administrative expenses Net operating income Includes $31,000 of depreciation each month. b. Sales are 20% for cash and 80% on account. c Sales on account are collected over a tree-month period with 10% c lected in the month ofsa e 70 colected in the rs month following the month o sale and the remaining collected in the second month following the month of sale. February's sales totaled $275,000, and March's sales totaled $290,000. d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are a orn the month o purchase. The remaining Spad n lo ng month Accounts payable at March 31 for inventory purchases during March total $130,900. 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 $99,400. f. Dividends of $38,000 will be declared and paid in April. g. Land costing $46,000 will be purchased for cash in May h. The cash balance at March 31 is $60,000; 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 each month, up to a total loan balance of $200,000. The interest rate on hese loans is % per month and or simplicity we will assume ha interes interest at the end of the quarter s no compounded he compan would, as ar as t sable e a e n lus accumulated Required 1. Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total Answer is complete and correct. Schedule of Expected Cash Collections April May June Quarter Cash sales $ 142.000$ 176,000$ 118,000 $ 436,000 Sales on account: 44,000 162,400 6, February 44,000 208,800 397,600113,568,000 563,200 47.20001 47.200 690,400 S 771,600 S 1,867,200 March 46,400 April May June Total cash collections 0,400492,800 S 405,200 2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for April, May, and June Answer is complete and correct. Merchandise Purchases Budget April May June $616 000 $413,000 Budgeted cost of goods sold Add: Desired ending merchandise inventory 23,20082,60068,600 Total needs Less: Beginning merchandise inventory 99,400123,20082,600 Required inventory purchases 497,000 620,200 698,600 481,600 520,800 575,400 399,000 b. A schedule of expected cash disbursements for merchandise purchases for April, May, and June, and for the quarter in total Answer is complete but not entirely correct. Schedule of Expected Cash Disbursements for Merchandise Purchases April May June Quarter Beginning account:s $ 123,200 520,800 575,600 199,500 199,500 $ 383,600 548,200 487,300 1,419,100 $ 123,200 able April purchases 260,4000 260,400 May purchases 287,800 287,800 June purchases Total cash disbursements 3. 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.) Answer is not complete. Garden Sales, Inc. Cash Budget For the Quarter Ended June 30 April May June Quarter Beginning cash balance Add collections from customers Total cash available Less cash disbursements 60,000 40,400 40,500 60,000 405,200 690,4007711,867,200 1,927,200 465,200 730,800 812,100 Purchases for inventory Selling expenses Administrative expenses Land purchases Dividends paid Total cash disbursements Excess (deficiency) of cash available over 89,000. 108,000. 70,000. 267,000 06,100 46,000 38,000 418,100 1,509,100 36,20012,400 46,000 18,500 38,000 145,500 319,700 190,200 82,400 540,600 729,700 disbursements Financing: Borrowings 50,000 Interest Total financing Ending cash balance 50,000 319,700 590,600 729,700 1,509,100