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: b. Sales are 20% for cash and 80% on account. c. Sales on account ate collected over a three-month period with 10% collected in the month of sale; 80% collected in the first month following the month of sale; and the remaining 10% collected in the second month following the month of sale. Fobruary's sales totaled $145,000, and March's soles totalod \$205,000, d. Inventory purchuses 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 totat $93,100. 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 ot March 31 is $71,400 1. Dividends of $21,000 will be declared and paid in April 9. Land costing $29.000 will be purchased for cash in May. 9. The cast balance of March 31 is $43,000, the company must maintain a cash bolance of ot 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 inctements of $4. . Coo at the beginning of eact month, up to a tatal loan bolance of $200,000. The intetest rate on these loans is 18 per month and for simplicity wo wili assume that interest is not compounded. The company would, as far as it is able, repay the loon plus accumulated interest at the end of the quarter. Prepare a cash budget for April, May, and June as well as in total for the quarter. (Cash deficiency, repayments and inter be indicated by a minus sign.) Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total. Prepare the following for merchandise inventory, a schedule of expected cash disbursements for merchandise purchases for Apri, May, and June, and for the quarter in total. Prepare the following for merchandise inventory, a merchandise purchases budget for April, May, and June