****I WOULD LIKE TO SEE CALCULATIONS FOR THE QUESTIONS NOT JUST THE ANSWER****

Problem:

Answer to the referring of data:

PROBLEM 8-25 Cash Budget with Supporting Schedules; Changing Assumptions LO8-2, LO8-4, L08-8L Refer to the data for Garden Sales, Inc., in Problem 8-24.The company's president is interested in knowing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending inventory assumptions as follows l. Sales continue to be 20% for cash and 80% on credit. However, credit sales from April, May, and June are collected over a three-month period with 25% collected in the month of sale, 65% collected in the month following sale, and 10% in the second month following sale. Credit sales from February and March are collected during the second quarter using the collection percentages specified in Problem 8-24 2. The company maintains its ending inventory levels for April, May, and June at 15% of the cost of merchandise to be Page 404 sold in the following month. The merchandise inventory at March 31 remains $84,000 and accounts payable for inventory purchases at March 31 remains $126.000 All other information from Problem 8-24 that is not referred to above remains the same PROBLEM 8-25 Cash Budget with Supporting Schedules; Changing Assumptions LO8-2, LO8-4, L08-8L Refer to the data for Garden Sales, Inc., in Problem 8-24.The company's president is interested in knowing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending inventory assumptions as follows l. Sales continue to be 20% for cash and 80% on credit. However, credit sales from April, May, and June are collected over a three-month period with 25% collected in the month of sale, 65% collected in the month following sale, and 10% in the second month following sale. Credit sales from February and March are collected during the second quarter using the collection percentages specified in Problem 8-24 2. The company maintains its ending inventory levels for April, May, and June at 15% of the cost of merchandise to be Page 404 sold in the following month. The merchandise inventory at March 31 remains $84,000 and accounts payable for inventory purchases at March 31 remains $126.000 All other information from Problem 8-24 that is not referred to above remains the same