Gyrden 50ies, Inc, sells garden supplies. Menegement is planing its caph neves for the second quarter. The foliowing information has been assemblod to assint in prepering o cash budget loc the cuoster. a. Budgeted monthly income statements for April to duly are as followt: Fincludes $20,000 in depreciation each month b. Sales are 20% for cosh and 80% on accourt. c. Soles on account are collected over a bvee-month period in the following ratio 101 collected in the menth of sale., 705 , colected in the first manth following the manth of sale, and the remaining 20% collected in the second manth following the month of sole. February's sales tetalled 5170.000, and Mardhssalers totalied $250.000. d. Itventory purchases are pald for within 15 days. Therefore, 50 , of a month's imvitsy purchases are paid for in the month of purchase. The remaining 50s are paid in the foliowing menth Accounts pwable at Marah 31 for inventory purchases during March total $102.000. e. At the end of each month. inventory must be on hand equal to 201 s of the cost of the merchandise to be sold in the: following menth. The merchandse invertiory at Mach 31 is 568,400 1. Dividends of 539.900 will be declared and paid in Aprit. P. Equipment cossing 5+3.300 will be purchsied for casti in Myy h. The cach balance at Merch 31 is $42,600, the company must meintain a cash bolence of at least $30000 at all times. 1. The compary can borrow from its berk, as needed, to bolster the cash accoure. Bombwings and repayments inust be in mutiples of 5500 . Interest is due onty when peincipal is repuid and is calculeted on the ameunt of repsyment for the duration of the time money was boerowed. Al borrowngs twhe place at the beginning of a month, and all fepayments are made at the end of a month. The annual interet rate is tax. Corpute interest on whole months (tha. 2/12, and so torthy Arequised: 1. Prepace a schedule of expected cash cotections trom sales for coch of the morchs Aant, May, and dune, and for the quarter in total. 2. Piepare the following for merchandse invertory? a. An inventory purchases buidget for each of the months Apri, May, and lune. 2. Prepare the following for morchandise inwensory a. An inventory purchases bodget for each of the months Aprit, May, and Jane: b. A schedule of expected cash disbursements for irventory for each of the months Aprit, Moy, and Jume; and for the quarter in total 3. Prepare a cash budget foe the third Quartec by month as well as in tobal for the nuarter 5 how borrowings from the congany's bank and repayments to the bark, as needed, to maintain the minimum cash belance. (Aheundup "Borrowing" and "Repsyments" answers to the nearest whole dellar amount. Any "Repayments" and "Interest" thould be indicated by a minus sign.]
