Garden Sales, Incorporated, 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: Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense* Total selling and administrative expenses Net operating income *Includes $15,000 of depreciation each month. April $ 530,000 371,000 159,000 May $ 730,000 511,000 June $ 430,000 July $ 330,000 301,000 231,000 219,000 129,000 99,000 73,000 93,000 54,000 33,000 41,500 55,200 33,800 31,000 114,500 148,200 87,800 64,000 $ 44,500 $ 70,800 $ 41,200 $ 35,000