Help Save & Exit Check f. Dividends of $40,000 will be declared and paid in April. .Land costing $48,000 will be purchased for cash in May. h. The cash balance at March 31 is $62,000; the company must maintain a cash balance of at least $40,000 at the end of each 1. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginni each month, up to a total loan balance of $200,000. The interest rate on these loans is 1% per month and for simplicity we w assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest a 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: a. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3 Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total. Schedule of Expected Cash Collections Cash sales Sales on account: February April May June Quarter Problem 8-24 (Algo) Cash Budget with Supporting Schedules (LO8-2, LO8-4, LO8-8] Check my work Garden Sales, Incorporated, 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: a. Budgeted monthly absorption costing income statements for April-July are: Salee Cost of goods sold Cross margin Selling and administrative expenses Selling expense Administrative expense Total selling and administrative expenses Net operating income "Includes $33,000 of depreciation each month. b. Sales are 20% for cash and 80% on account. April $730,000 May $910,000 511,000 637,000 June $610,000 427,000 July $520,000 364,000 219,000 273,000 103,000 156,000 91,000 110,000 12,000 52,000 50,500 68,800 141,500 178, 800 $ 77,500 $ 94,200 44,600 116,600 $ 66,400 49,000 101,000 $ 55,000 c. Sales on account are collected over a three-month period with 10% collected in the month of sale; 70% collected in the first month following the month of sale; and the remaining 20% collected in the second month following the month of sale. February's sales totaled $285,000, and March's sales totaled $300,000 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 $135,100. 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 $102,200 f. Dividends of $40,000 will be declared and paid in April