Garden Sales Incorporated, els garden supplies Management islanning ts cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak soles of lawn care euiment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter 3. Budgeted monthly absorption costing income statements for Ant-July are 3.1. 50 $310.00 23 . Sale cert code told Grosse Sandinistratives belline pente dative expense Total sens and anstrative expenses Net operating Incos "Includes $19.000 of depreciation each month 1. 2.ee SOR 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 me month of sale: 70% collected in the first month following the month of sale and the remaining 20% collected in the second month fonowing the month of sale February's sales totaled $185,000, and March's sales totaled $235.000 d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are old 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 $100,100 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 3115 $68,500 Dividends of $27.000 will be declared and paid in April g Land costing $35,000 will be purchased for cash in May. n. The cash balance at March 316 $49,000, the company must maintain a cash balance of at least $40,000 at the end of each month L. The company has an agreement with local bank that allows the company to borrow in increments of S1000 at the beginning of each month, up to a total loan balance of $200,000. The interest rate on these loons is 15 per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able tepay the loon plus accumulated interest at the end of the quarter The company's president is interested in knowing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending Inventory assumptions as follows a. Sales continue to be 20% for cash and 80% on credit. However credit sales from April May and June are collected over a three- month period with 25% collected in the month of sale 65% collected in the month foowing sale, and 10% in the second month following sele Credit sales from February and March are collected during the second quarter using the collection percentages specified in the main section b. The company maintains its ending inventory levels for Apr May, and June at 15% of the cost of merchandise to be sold in the following month. The merchandise inventory at March 31 remains $68.600 and accounts payable for inventory purchases at March 31 remains $100100 Required: 1. Using the president's new assumptions in (a) above, prepare a schedule of expected cash collections for April, May, and June and for the quarter in total 2 Using the president's new assumptions in (b) above, prepare the following for merchandise inventory a. A merchandise purchases budget for April May, and June 31 remains $100.0 Required: 1. Using the president's new assumptions in (a) above, prepare a schedule of expected cash collections for Apr May, and June and for the quarter in total 2. Using the president's new assumptions in (b) above, 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. Using the president's new assumptions, prepare a cash budget for April, May, and June, and for the quarter in total Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3 Using the president's new assumptions in (6) above, prepare the following for merchandise inventory, merchandise purchases budget for April May, and June Merchandise Purchases Budget April May June d 0 Total needs $ 5 0 5 0 Required inventory purchases 31 remains $100,100 Required: 1. Using the president's new assumptions in (a) above, prepare a schedule of expected cash collections for April, May, and du the quarter in total 2. Using the president's new assumptions in (b) above, 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 to 3. Using the president's new assumptions, prepare a cash budget for April, May, and June, and for the quarter in total Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3 Using the president's new assumptions(b) above, prepare the following for merchandise inventory, a schedule of expected cash disbursements for merchandise purchases for Apr May, and June and for the quarter in total, Schedule of Expected Cash Disbursements for Merchandise Purchases April May June Quarter S 0 0 April purchases 0 May purchases June purchases 0 0 $ $ Total cash disbursements following month The merchandise inventory at March 31 remains $68,600 and accounts payable for mentory purchases at March 31 remains $100,100 Required: 1 Using the president's new assumptions in (a) above, prepare a schedule of expected cash collections for Apr May, and June and for the quarter in total 2. Using the president's new assumptions in (D) above, prepare the following for merchandise Inventory A merchandise purchases budget for April, May, and June. D. A schedule of expected cash disbursements for merchandise purchases for April, May, and June and for the quarter in total 3. Using the president's new assumptions, prepare a cash budget for April May, and June, and for the quarter in total Complete this question by entering your answers in the tabs below. Required 1 Required 24 Required 2 Required 3 Using the president's new assumptions, prepare a cash budget for April May, and lune, and for the quarter in total. Cash deficiency payments and interest should be indicated by a minus :) Garden Sales, Incorporated Cash Budget For the Quarter Ended June 30 April way Quarter 0 Beginning cash balance Add collections from customers Total cash available Less cash disbursements Purchases for inventory Selling expenses Administrative expenses Land purchases Dividends paid Total cash disbursements 0 0 0 Excess (deficiency) of cash available over disbursements Financing Borrowings Repayment Interest . Total financing 5 OS 5 OS Ending cash balance Required 1 Required 2A Required 2B Required 3 Prepare the following for merchandise inventory, a merchandise purchases budget fo Merchandise Purchases Budget April May June Total needs 0 0 0 Required inventory purchases 0 O $ 0 $ 0 DAL Damned 2B Required 1 Required 2A Required 28 Required 3 Prepare the following for merchandise inventory, a schedule of expected cash disbursements for merchandise purchases for April May, and June, and for the quarter in total. Schedule of Expected Cash Disbursements for Merchandise Purchases April May June Quarter 5 0 0 0 Aprit purchases May purchases June purchases Total cash disbursements 0 05 05 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