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. Soles on account are collected over a three-month period with 10% collected in the month of sale; 705 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 $305,000, and March's sales totaled $320,000 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 50x is paid in the following month. Accounts payable at March 31 for inventory purchases during March total $146,300 e. Each month's ending inventory must equal 20% of the cost of the merchandise to be sold in the foliowing month. The merchandise inventory at March 31 is $113,400 t Dividends of $44,000 will be declared and paid in April. g. Land costing $56,000 wiil be purchased for cash in Msy h. The cast bolance at March 31 is $66,000; the company must maintain a cash bolance 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 total loan balance of $200,000. The interest rate on these loans is 1% per month and for simplicity we wul assume that interest is not compounded. The company would, as far as a is able, repay the loan plus accumulated interest at the end of the quartet. Required: 1. Prepare a schedule of expected cash collections for Apne, May, and June, and for the quarter in totat. 2. Prepare the following for merchandise inventory