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 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 $260,000, and March's sales totaled $275,000. d. Inventory purchases 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 Morch 31 for inventory purchases during March total $24,600. 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 $95,200. f. Dividends of $35,000 will be declated and paid in April. g. Land costing $43,000 will be purchased for cash in May. h. The eash botance of March 34 is $57,000; 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 each month, up to a fotal loan balance of $200,000. The interest rate on these loans is 1% per month and for simplicity we wil assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the 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 Apri, 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 o cash budget for Aprit, May, and June as well as in total for the quarter. Complete this question by entering your answers in the tabs below. Prepare a schedule of expected cash collections for Apri, May, and June, and for the quarter in total. 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.) Required: 1. Prepore a schedule of expected cash collections for April, May, and Jure, and for the quarter in totat. 2. Prepare the following lor merchandise inventory. a. A merchandise purchases budger for Apri, May, and June. b. A schedule of expocted eash disbursements for merchandise purchases for Apnis, May, and June, and for the quarter in total. 3. Prepare a ensh budget for April, Mny, and fune ss weit as in total for the quarter. Complete this question by entering your answers in the tabs below. Prepare the folicwing for merchandise imventory, o vchedule of expected cash diabursements for therchandise ourchases for Aprit, May, and June, and for the quatser in totai. Required: 1. Prepare e schedule of expected cash collections for Apal, May, and Jume, and for the cuarter in total. 2. Prepare the following for merchandise inventory: a. A merchandise purchases budgot for April, May, and Juno b. A schedule of expected costr distursements for merchandise purchases for April, May, and June, and for the quarter in totat. 3. Prepare a cosh budget for Aprit, May, and Jurie as well os in total for the quarter. Complete this question by entering your answers in the tabs below