Garden Sales, Incorporated, selis 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: b. Sales are 203 for cash and 80% on account. c. Sales on account are collected over a three-month period with 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 totaled $200.000, and March's sales totaled $300.000. d. inventory puichases 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% is paid in the following month. Accounts payable at March 31 for inventory purchases during March total $126.000 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 $84,000. f. Dividends of $49,000 will be deciared and paid in April. 9. Land costing $16.000 will be purchased for cash in May. h. The cash balance at March 31 is $52.000, the company must maintain a cash balance of at least $40,000 at the end of each month. 1. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of assume that interest is not compouncede. The comp. The interest rate on these loans is 1% per month and for simplicity we will. end of the quarter Required: 1. Prepare a schedule of expected cash collections for Aprit, May, and June, and for the quarter in total. 2. Prepare the following for merchandise inventory: 0. A merchandise purchases budget for Aprit. May, and June. b. A schedule of expected cash disbursements for merchandise purchases for Apri, May, and June, and for the quarter in total. 3. Prepare a cash budget for Aprili, May, and June as well as in total for the quarter. Required: 1. Prepare a schedule of exoected cash coliections for Apma May and June. and for the 2 Prepare the folownig for merchand se invenitiorya a. A merchandire purcheses bugget for Acri. May. and Juse. b. A schedule of emeected oath dishurisemerts for derchandise purchaser for Aprif Moy. 3 Prepare a cash budget for Aoriu May and kane as weil as in totai for the quarter. Complete this question by enteridg your answers in the tabs below. Prepsre a achedule of ezpected cash oplecticns for Mprd, May, and Jane, and for the quarter in end of the quates. Poquired: t. Piecaie a shedule af expected cwah cobections lar Apaik, Moy, and June, and for the quarter in toth 2. Preave the foloming for merthandis miveusis. 1. A inerthandise peichates budget for forl itor, and Jure 1. frepait a cott budget sor Apri. May and dre mweil as in fotal for the quarter. end d the quarter Aecuinet. 2. Peppare the lakening for miticharese intuentso: a. A merdandse pertairs budyet for Apre. Moy arat fine Garden Sales, Incorporated, selis 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: b. Sales are 203 for cash and 80% on account. c. Sales on account are collected over a three-month period with 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 totaled $200.000, and March's sales totaled $300.000. d. inventory puichases 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% is paid in the following month. Accounts payable at March 31 for inventory purchases during March total $126.000 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 $84,000. f. Dividends of $49,000 will be deciared and paid in April. 9. Land costing $16.000 will be purchased for cash in May. h. The cash balance at March 31 is $52.000, the company must maintain a cash balance of at least $40,000 at the end of each month. 1. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of assume that interest is not compouncede. The comp. The interest rate on these loans is 1% per month and for simplicity we will. end of the quarter Required: 1. Prepare a schedule of expected cash collections for Aprit, May, and June, and for the quarter in total. 2. Prepare the following for merchandise inventory: 0. A merchandise purchases budget for Aprit. May, and June. b. A schedule of expected cash disbursements for merchandise purchases for Apri, May, and June, and for the quarter in total. 3. Prepare a cash budget for Aprili, May, and June as well as in total for the quarter. Required: 1. Prepare a schedule of exoected cash coliections for Apma May and June. and for the 2 Prepare the folownig for merchand se invenitiorya a. A merchandire purcheses bugget for Acri. May. and Juse. b. A schedule of emeected oath dishurisemerts for derchandise purchaser for Aprif Moy. 3 Prepare a cash budget for Aoriu May and kane as weil as in totai for the quarter. Complete this question by enteridg your answers in the tabs below. Prepsre a achedule of ezpected cash oplecticns for Mprd, May, and Jane, and for the quarter in end of the quates. Poquired: t. Piecaie a shedule af expected cwah cobections lar Apaik, Moy, and June, and for the quarter in toth 2. Preave the foloming for merthandis miveusis. 1. A inerthandise peichates budget for forl itor, and Jure 1. frepait a cott budget sor Apri. May and dre mweil as in fotal for the quarter. end d the quarter Aecuinet. 2. Peppare the lakening for miticharese intuentso: a. A merdandse pertairs budyet for Apre. Moy arat fine