Help me to answer this please

You are appointed as an accountant by Al Busaiteen Sales, Inc. that sells garden supplies Management is planning its cash needs for the second quarter. The company usually must borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The head of department asked you to prepare a cash budget for the quarter. To this end, you have worked with accounting and other areas to gather the information assembled below Budgeted monthly absorption costing income statements for April July is: Sales Cost of foods sold Gross margin April S550.000 S315,000 $235.000 May $700.000 S472.500 S227.500 June $400,000 $262.500 $137.500 $380,000 5210,000 S170,000) Total selling and administrative $93.350 S120,000 S60,840 $78,000 expenses Net income S141.650 S107,500) S76,660 592.000 You have gathered the following additional information: 1. All sales are on credit. Only 10% of a month's sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 2016 is collected in the second month following sale. February's sales totaled S160,000, and March's sales totaled 5240,000 2.50% of a mouth's inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month Accounts payable at Murch 31 for inventory purchases during Match total $120,000 1. 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 1 542.200, 4. Dividends of $20,000 will be declared and paid in April S. L and costing $89.100 will be purchased for cash in May. 6. Selling and administrative expense includes $15,000 of depreciation each month 7. The cath balance at March 31 is 550.000; the company must maintain a cash balance of at least $40.000 at the end of cach month All borrowing is done at the beginning of a mouth any tupayments are made at the end of the quarter 8. The company has an agreement with a local bank that allows the company to borrow any amount at the beginning of each month, at interest rate 19 per month Required: 1. Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total. [3 marks] 2. Prepare a merchandise purchases budget for April, May, and June. [3 marks) 3. Prepare a schedule of expected cash disbursements for merchandise purchases for April, May, and June, and for the quarter in total. [3 marks] 4. Prepare a cash budget for April, May, and June as well as in total for the quarter. (6 marks]