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Janus Products. Inc. is a merchandising company that selis binders, paper, and other school supples. The company is planning its cash needs for the third

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Janus Products. Inc. is a merchandising company that selis binders, paper, and other school supples. The company is planning its cash needs for the third quarter. In the past Jants Products has had to borrow money during the third quarter to support peak sales of back-to-school materials, which occur duting August. The following information has been assembled to assist in preparing cash budget for the cuanter a. Budgeted monthly absorption costing income statements for July to October are as follows: "Includes $2.650 depreciation each month. b. Sates are 20% for cash and 80% on credit. cGredit sales are collected over a three-month period, with 10% collected in the month of sale. 70% in the month following sale, and. 208 in the second month following sale. May sales totalled $93,000, and June sales totalled 549,000 . d. Inventory putchases are paid for within 15 days. Therefore, 5000 of a month's inventory purchases are paid for in the month of purchase. The remeining 50% are paid in the following month. Accounts payable for imventory purchaseb at June 30 total 518200 . e. The company maintains fts ending inventory levels at 75% of the cost of the merchandise to be sold in the following month. The metchandise iriventory at June 30 is $24,500 f. Land costing 55,150 will be purchased in July. 9. Dividendt of $1,650 will be declared and paid in September. 1. The cash balance on J jne 30 is $9,300, the compary must mintain a cash balance of at least this amount at the end of each monthe 1. The company has an agreement with ao local bank that allows it to borrow in increments of 5 .oog at the beginning of eich month up to a total loan balance-of $40,000. The interest rate on these loans is the per menth, and for aimplicity, we will assume thet interest is not cornpounded The compiry would, as far as it in able, repay the loan plus accumuloted interest at the eind of the quartef 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.)

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