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; 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. February's sales totaled $175,000, and March's sales totaled $230,000. 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 March 31 for inventory purchases during March total $103,600. 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 $78,400. f. Dividends of $26,000 will be declared and paid in April. 9. Land costing $34,000 will be purchased for cash in May. h. The cash balance at March 31 is $48,000; the company must maintain a cash balance of at least $40,000 at the end of each month. c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $153,500. d. In preparing the cash budget, assume that the $32,000 loan will be made in April and repaid in June. Interest on the Ioan will total $800. Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total, 2. Prepare a cash budget, by month and in total, for the three-month period. Complete this question by entering your answers in the tabs below