Garden Sales, lncorporated, sels garden supples. Management is planning its cash needs for the second quarter, The comparty usually has to borrow money during this quarter to support peak sales of lawn care equipment, which ocour during May The followeng information has been assembled to assist in preparng a cash buoget for the quarter. a. Budgeled monthey absorption costing income statements for April-july are b. 5ves are 20w for cash and Bok on accoum c. Sales on account are colected over a three-month period wath 10 voliected in the month af sale. zovi collected in the frat month fodowing the month of saie: and the remaing 20N coliected in the second month following the month of save februarys sales totaied s sio.000, and Maichis saies totared 3220,000 d. inventoly purchases are boxd for wehin 15 days. Therefore. 50N of a months iventory purchases are pad for in the month of purchase. The iemaining 50% is paid in the following month. Accounts payabie at March 31 for meciory purchases during March total 593,800 e. Each monthis ending itventory must equai 20N of the cost of the merchandise to be soid in the folowing month. The merchandse mentory ar March 31 is $64,400 1. Dividends of $24.000 wil be deciared and paid in April g. Land coseng 332.000 wili be purenased for cast in May n. The cash balance at March 31 is $46.000; the compony must maintain a cash baiance of at ieast $40000 at the end of each month 1. The company has an agreement with a iocai bank that blows the company to borrow in increments of \$tood at the beginning of each month, up to a total ioan balance of $200.000. The interest rate on these loans is tin per month and for simplicity we wail assume that inserest is not compoanded. The company wouid, as far as it is able, repay the loan plus accumulated inserest at the end of the quarter The companys president is imerested in knowing how reoucing invertary leveis and collecting accounts receivable sooner wil impact. the cash budget. He reveses the cash colection and enoing imentory assumptions as follows. a. Sales continue to be 20% for cash and 80% on credit However, cred sales from Aprit, May, and june are collected over a thireemonth penod with 25% collected in the month of sale. 65% collected in the month followng sale. and 10% in the second month folowing sale Creot sales from February and March are coliected during the second quarter using the coliection percentages specilied in the main secton. b. The company maintains its ending inventory levels for Apris, May, and June at 15% of the cost of merchandise to be soid in the folowing month. The merchandise inventory at Maren 31 remains $64,400 and accounts payable for imventory purchases at March following month. The merchandise Inventory at March 31 remains $64,400 and accounts payable for inventory purchases at March 31 remains $93,800 Required: 1. Using the president's new assumptions in (a) above, prepare a schedule of expected cash collections for Aprit, May, and June and for the quarter in total. 2. Using the president's new assumptoons in (b) above, prepare the following for merchandise inventory. a. A merchandise purchases budget for Aprit, 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. Using the president's new assumptions, prepare a cash budget for April, May, and June, and for the quarter in total. Complete this question by entering your answers in the tabs below. Using the president's new assumptions in (a) above, prepare a schedule of expected cash collections for April, May, and June and for the quarter in total. Garden Sales, lncorporated, sels garden supples. Management is planning its cash needs for the second quarter, The comparty usually has to borrow money during this quarter to support peak sales of lawn care equipment, which ocour during May The followeng information has been assembled to assist in preparng a cash buoget for the quarter. a. Budgeled monthey absorption costing income statements for April-july are b. 5ves are 20w for cash and Bok on accoum c. Sales on account are colected over a three-month period wath 10 voliected in the month af sale. zovi collected in the frat month fodowing the month of saie: and the remaing 20N coliected in the second month following the month of save februarys sales totaied s sio.000, and Maichis saies totared 3220,000 d. inventoly purchases are boxd for wehin 15 days. Therefore. 50N of a months iventory purchases are pad for in the month of purchase. The iemaining 50% is paid in the following month. Accounts payabie at March 31 for meciory purchases during March total 593,800 e. Each monthis ending itventory must equai 20N of the cost of the merchandise to be soid in the folowing month. The merchandse mentory ar March 31 is $64,400 1. Dividends of $24.000 wil be deciared and paid in April g. Land coseng 332.000 wili be purenased for cast in May n. The cash balance at March 31 is $46.000; the compony must maintain a cash baiance of at ieast $40000 at the end of each month 1. The company has an agreement with a iocai bank that blows the company to borrow in increments of \$tood at the beginning of each month, up to a total ioan balance of $200.000. The interest rate on these loans is tin per month and for simplicity we wail assume that inserest is not compoanded. The company wouid, as far as it is able, repay the loan plus accumulated inserest at the end of the quarter The companys president is imerested in knowing how reoucing invertary leveis and collecting accounts receivable sooner wil impact. the cash budget. He reveses the cash colection and enoing imentory assumptions as follows. a. Sales continue to be 20% for cash and 80% on credit However, cred sales from Aprit, May, and june are collected over a thireemonth penod with 25% collected in the month of sale. 65% collected in the month followng sale. and 10% in the second month folowing sale Creot sales from February and March are coliected during the second quarter using the coliection percentages specilied in the main secton. b. The company maintains its ending inventory levels for Apris, May, and June at 15% of the cost of merchandise to be soid in the folowing month. The merchandise inventory at Maren 31 remains $64,400 and accounts payable for imventory purchases at March following month. The merchandise Inventory at March 31 remains $64,400 and accounts payable for inventory purchases at March 31 remains $93,800 Required: 1. Using the president's new assumptions in (a) above, prepare a schedule of expected cash collections for Aprit, May, and June and for the quarter in total. 2. Using the president's new assumptoons in (b) above, prepare the following for merchandise inventory. a. A merchandise purchases budget for Aprit, 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. Using the president's new assumptions, prepare a cash budget for April, May, and June, and for the quarter in total. Complete this question by entering your answers in the tabs below. Using the president's new assumptions in (a) above, prepare a schedule of expected cash collections for April, May, and June and for the quarter in total