having trouble solving this one for practice.

Garden Sales, Inc., sells garden supplies. Management is planning its cosh needs for the second quarter. The company usually has to borrow money during this quarter to support pesk 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: 6. Budgeted monthly absorption costing income statements for April-July are: April $ 55e,eee 385,eee 165,90 May $750,000 525, eee 225, July $450, $ 350,Bee 315,Bee245, eae 135, Bee 105.cae Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense! Total selling and administrative expenses Net operating income 75, 117,500 $ 47,500 95, eee 5 6,00 35, see 151,800 9 1,000 73,200 $ 44,200 35, ees 33,292 68,00 37,eee $ $ "Includes $17,000 of depreciation esch month. 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 sole; and the remaining 10% collected in the second month following the month of sale. February's sales totaled $165.000, and March's sales totaled $225.000. 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 $101,500. 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 $77,000. f Dividends of $25.000 will be declared and paid in April. g. Land costing $33,000 will be purchased for cash in May. h. The cash balance at March 31 is $47.000: the company must maintain a cash balance of at least $40,000 at the end of each month i. 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 loon balance of $200,000. The interest rate on these loans is 195 per month and for simplicity we will assume that interest is not compounded. The company would, as for as it is able, repay the loan plus accumulated interest at the end of the quarter. Required: 1. Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total 2. Prepare the following for merchandise inventory: 6. A merchandise purchases budget for April, 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. Prepare a cash budget for April, May and June as well as in total for the quarter. 3 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total. in total Schedule of Expected Cash Collections April May June $ 110,000 $ 150,000 $ 90,000 Quarter $ 350,000 Cash sales Sales on account: 13,200 February March Apri May 13,200 144,000 44,000 162,000 l 18.000 352,000 80,000 44,000 480,000 36,000 650,000 440,000 540,000 36.000 June Total cash collections s 311,200 $ 580,000 $ 1,541,200 Garden Sales, Inc., 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 pesk 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: April $ 550,00 $ 758,eee 385, eee 525, 165,228 225, Bee June July $ 45e,eee $ 350, eee 315, eae 245, eee 135,eae 125,00 Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense Total selling and administrative expenses Net operating income 75,880 42. Sae 117,500 47,500 95,202 56, 56.88e 35,ege 151,800 91.000 73,zee $ 44, 35, 33, eee 68.00 37,000 $ $ Includes $17,000 of depreciation each month. 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 $165,000, and March's sales totaled $225,000. 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 Morch 31 for inventory purchases during March total $101,500. 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 $77.000. f Dividends of $25.000 will be declared and paid in April. 9. Land costing $33,000 will be purchased for cash in May. h. The cash balance at March 31 is $47.000: the company must maintain a cash balance of at least $40.000 at the end of each month i. 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 loon balance of $200,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Required: 1. Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total 2. Prepare the following for merchandise inventory: 8. A merchandise purchases budget for April, 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. Prepare a cash budget for April, May, and June as well as in total for the quarter. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Prepare the following for merchandise inventory, a merchandise purchases budget for April, May, and June. Merchandise Purchases Budget April May Budgeted cost of goods sold 385,000 252,000 Add: Desired ending merchandise 50,400 63.000 Total needs 435,400 315,000 Less: Beginning merchandise inventory Required inventory purchases 435,400 315,000 Garden Sales, Inc., 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. . Budgeted monthly absorption costing income statements for April-July are: April $ 55e,eee 385, cee 165,288 May June $750, $450, eae 525, eee315,000 225, 135, Bee July $ 350,Bee 245, een l es, eee Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense Total selling and administrative expenses Net operating income 75,Bee 95, 42,5ae 5 6,800 117,5ae151, e 47,5ee $ 73,zee 56, 35, 35, 33, 91, eee68, 44,200 $ 37,90 $ $ "Includes $17,000 of depreciation each month. b. Soles 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 $165,000, and March's sales totaled $225.000. 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 $101,500. 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 $77,000. f Dividends of $25.000 will be declared and paid in April. 9. Land costing $33,000 will be purchased for cash in May. h. The cash balance at March 31 is $47.000, the company must maintain a cash balance of at least $40.000 at the end of each month i. 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 loon balance of $200,000. The interest rate on these loans is 16 per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Required: 1. Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total 2. Prepare the following for merchandise inventory: 2. A merchandise purchases budget for April, 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. Prepare a cash budget for April, May, and June as well as in total for the quarter. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Prepare the following for merchandise inventory, a schedule of expected cash disbursements for merchandise purchases for April, May, and June, and for the quarter in total. s Schedule of Expected Cash Disbursements for Merchandlee Purchase April May June Beginning accounts payable s 101,500 April purchases 179,200 179,200 May purchases 132,300 132,300 June purchases 150,500 s 280,700 311,500 $ 262,800 Quarter 101,500 350,400 264,600 150,500 875,000 s Required 2A Required > Required: 1. Prepare a schedule of expected cash collections for April May, and June, and for the quarter in total 2. Prepare the following for merchandise inventory: 0. A merchandise purchases budget for April, 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. Prepare a cash budget for April, May. and June as well as in total for the quarter. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 23 Required 3 Prepare a cash budget for April, May, and June as well as in total for the quarter. (Cash deficiency, repayments and interest should be indicated by a minus sign. Garden Sales, Inc. Cash Budget For the Quarter Ended June 30 April s 47,000 $ May 40,000 June 140,700 Quarter 47,000 47.000 40,000 140,700 47,000 Beginning cash balance Add collections from customers Total cash available Less cash disbursements Purchases for inventory Seling expenses Administrative expenses Land purchases Dividends paid Total cash disbursements Excess deficiency) of cash available over disbursements Financing: Borrowings Repayment Interest Total financing Ending cash balance 0 47.000 0 40,000 0 140,700 47.000 88,000 88,000 2,840 90.640 231,340 88,000 88.000 2,840 178.840 225,840 68,000 135,000 0 40,000 $ S S