Garden Sales, Incorporated, sells garden supplies. Management is planning its cash needs for the se$$ond 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 sales for April$-$July are:

Sales

b$.$ 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 $$290,000,$ and March's sales totaled $$305,000.$

c$.$ The cash balance at March $31$ is $$63,000$; the company must maintain a cash balance of least $$10,000$ at

the end of each month.

d$.$ 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 total loan balance of $$300,000.$ The interest rate on these loans is $1\%$

per month and for simplicity we will assume that interest is not compounded. The company will repay the loan

plus accumulated interest in the first month at the end of the quarter.

Required:

Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total.