Hi, I believe I did the 1a part right but I don't think I did 1b, 2 and don't understand how to do part 3, sorry just getting very confused past 1a. Thanks very much

Janus Products, Inc. is a merchandising company that sells binders, paper, and other school supplies. The company is planning its cash needs for the third quarter. In the past, Janus Products has had to borrow money during the third quarter to support peak sales of back-to-school materials, which occur during August. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for July to October are as follows: July $59,000 31,600 27,400 August $89,000 49,600 39,400 September $69,000 37,600 31,400 October $64,000 34,600 29,400 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense* Total selling and administrative expenses Net operating income 12,900 6,600 19,500 $ 7,900 15,500 9,100 24,600 $14,800 10,400 8,000 18,400 $13,000 9,200 7,800 17,000 $12,400 *Includes $2,950 depreciation each month. b. Sales are 20% for cash and 80% on credit. C. Credit sales are collected over a three-month period, with 10% collected in the month of sale, 70% in the month following sale, and 20% in the second month following sale. May sales totalled $49,000, and June sales totalled $55,000. 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% are paid in the following month. Accounts payable for inventory purchases at June 30 total $21,200. e. The company maintains its ending inventory levels at 75% of the cost of the merchandise to be sold in the following month. The merchandise inventory at June 30 is $27,500. f. Land costing $5,450 will be purchased in July. g. Dividends of $1,950 will be declared and paid in September. h. The cash balance on June 30 is $9.900; the company must maintain a cash balance of at least this amount at the end of each month. i. The company has an agreement with a local bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $40,000. 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 July, August, and September and for the quarter in total. JANUS PRODUCTS, INC. Schedule of Expected Cash Collections July August September Quarter $ 11,800 $ 17,800 $ 13,800 $ 43,400 Cash sales Credit sales: May June July August September Total cash collections 7,840 30,800 4,720 88,000 33,040 7,120 7,840 118,800 11,040 48,800 49,840 56,960 5,520 5,520 80,200 $ 281,320 $ 55,160 $ 145,960 $ a. A merchandise purchases budget for July, August, and September. JANUS PRODUCTS, INC. Merchandise Purchases Budget July August September Budgeted cost of goods sold $ 31,600 $ 49,600 $ 37,600 Add: Desired ending inventory 37,200 28,200 25,950 Total needs 76.500 77,800 63,550 Deduct: Beginning inventory 27,500 37,200 28,200 Required inventory purchases $ 49,000 $ 40,600 $ 35,350 b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total. JANUS PRODUCTS, INC. Schedule of Expected Cash Disbursements July August September Quarter Accounts payable, June 30 $ 21,2007 $ 21,200 July purchases 24,500 24,500 49,000 August purchases 20,3007 20,300 40,600 September purchases 17,675 17,675 Total cash disbursements $ 45,700 $ 44,800 $ 37,975 $ 128,475 3. Prepare a cash budget for July, August, and September and for the quarter in total. (Roundup "Borrowing" and "Repayments" answers to the nearest whole dollar amount. Any "Repayments" and "Interest" should be indicated by a minus sign. Leave no cells blank - be certain to enter "O" wherever required.) JANUS PRODUCTS, INC. Cash Budget For the Quarter Ended September 30 July $ 9,900 August September Quarter $ 9,900 Cash balance, beginning Add: Collections from sales 9,900 0 0 9,900 Total cash available Deduct: Disbursements: Inventory purchases Selling expenses Administrative expenses Land Dividends 0 0 0 0 Total disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest 0 0 0 Total financing Cash balance, ending