Janus Products. Inc., is a merchandising company that sells binders, paper, and other school supplies. The company is planning its cash neste for the third quarter. In the past, Janus Products has had to borrow money during the Fird quarter to support pask 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: Aug $86,000 48.400 37,600 So Cost of goods sold Gromagn Selling and administrative expenses Seling expense Administrative expense Trolling and scal anal Not operating income f. Landsting 55,300 will be purchased in July g. Dividends of $1,800 will be declared and paid in September. C Credit sales: May June July Auguet September Totalcachon includes $2.800 depreciation sach 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 totaled $40,000, and June sales totalled 352,000. d. Inventory purchase sew paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 60% are paid in the following month. Accounts payable for Inventory purchases at June 30 total $19,700. 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 $26,000. 1043 notes July $50,000 30,400 25,800 h. The cash balance on June 30 is $8,000; the company must maintain a cash balance of at least this amount at the end of each month. 1. 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 side, repay the lasen plus sccumulated internal 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 ACCOUERS THERE, JUNE Judy purchases August purcha sempurna 12.000 6450 July 2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for July, August, and September JANUGRODUCTO. IND. Merchandise Purchases Tural 18.450 23,700 NOW 17 000 57,150 $13,900 $11,000 sa Du Devrontine da. 14.900 6,800 8,800 Worksheet August September Quarter A schedule of expected ca dabarments for merchandise purchase for July August and September and for the quaner in total JANUS PRODUCTS, ING Schedule of Expected Gesin Disbursements July Aug Sep JUV September October $85,000 $81,000 36.400 33.400 29/0 27000 August September 10.100 7,700 Mora 3 Procarpa bude for July August and September and for the terinfotel. Founder "Borrowing" and "Ragants" sunt. Ary "Rupay it sur led lysinus siges Leave wels Bank-beverlainenler 3 wherever required) Excess (daticiency or can avance ever disbursements samning 0.900 7,500 16400 $11.200 Ca Quarter Leaming On: 07-02 Preparac tranvingme mi trn venename toge JAN PRODUCTS, HIG Augus Sepertvendeser Chari Janus Products. Inc., is a merchandising company that sells binders, paper, and other school supplies. The company is planning its cash neste for the third quarter. In the past, Janus Products has had to borrow money during the Fird quarter to support pask 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: Aug $86,000 48.400 37,600 So Cost of goods sold Gromagn Selling and administrative expenses Seling expense Administrative expense Trolling and scal anal Not operating income f. Landsting 55,300 will be purchased in July g. Dividends of $1,800 will be declared and paid in September. C Credit sales: May June July Auguet September Totalcachon includes $2.800 depreciation sach 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 totaled $40,000, and June sales totalled 352,000. d. Inventory purchase sew paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 60% are paid in the following month. Accounts payable for Inventory purchases at June 30 total $19,700. 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 $26,000. 1043 notes July $50,000 30,400 25,800 h. The cash balance on June 30 is $8,000; the company must maintain a cash balance of at least this amount at the end of each month. 1. 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 side, repay the lasen plus sccumulated internal 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 ACCOUERS THERE, JUNE Judy purchases August purcha sempurna 12.000 6450 July 2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for July, August, and September JANUGRODUCTO. IND. Merchandise Purchases Tural 18.450 23,700 NOW 17 000 57,150 $13,900 $11,000 sa Du Devrontine da. 14.900 6,800 8,800 Worksheet August September Quarter A schedule of expected ca dabarments for merchandise purchase for July August and September and for the quaner in total JANUS PRODUCTS, ING Schedule of Expected Gesin Disbursements July Aug Sep JUV September October $85,000 $81,000 36.400 33.400 29/0 27000 August September 10.100 7,700 Mora 3 Procarpa bude for July August and September and for the terinfotel. Founder "Borrowing" and "Ragants" sunt. Ary "Rupay it sur led lysinus siges Leave wels Bank-beverlainenler 3 wherever required) Excess (daticiency or can avance ever disbursements samning 0.900 7,500 16400 $11.200 Ca Quarter Leaming On: 07-02 Preparac tranvingme mi trn venename toge JAN PRODUCTS, HIG Augus Sepertvendeser Chari