Garden Sales, Incorporated, sells garden supplles. 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 tos collected in the month of sale, 70% collected in the first month following the month of sales and the remaining 20% collected in the second month following the month of sole. Fobruary's sales? totaled $250,000, and March's sales totaled $265,000. d. Inventory purchases are paid for within is days. Therefore. 50% of a month's inventory puchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable ot March 31 for inventory purchoses during March. total $120,400 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 $92.400 C. Dividends of $33.000 will be declared and paid in Aprit. 9. Land costing $41,000 will be purchased for cash in May: h. The cash balance at March 31 is $55,000 i 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 locel bank that allows the company to borrow in increments of $1,000 at the begining of each month, up to a total loen balance of $200,000. The interest tate on these loans is th per mionth and for sinpicity we will assume that interest is not compounded, The compary would, as for as it is able, repay the loan plus accumulated interest or the end of the cuarter. Reguired: 1. Prepare a schedule of expected cash coliections for Apria, May, and June, and for the querter in total. 2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for Aprit, May, and June. b. A schedule of expected cash disbursements for merchendise purchases for Appit, Moy, and June, and for the puarter in totet. 3. Prepore a cash budget for April, Mny, and June as wet as in total for the quartec, Complete this quevtion by entering your answers in the tabs below