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 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-October are as follows: the third quarter to support peak sales of back-to-school materials, which occur during Sales $ 38,000 $ 68,000 66,000 $ 43,000 Cost of goods sold Gross margin Selling and administrative expenses: 22,000 40,000 30,000 25,000 16,000 28,000 36,000 18,000 Selling expense Administrative expense" 6.400 10,600 8,700 8,200 6,800 6,200 9,800 17,000 15,500 14,400 6,200 $ 11,000 $ 20,500 $ 3,600 3,400 6,400 Total selling and administrative expenses Net operating income Includes $1,600 depreciation each month. b. Sales are 30% for cash and 70% on credit. c. Credit sales are collected over a three-month period with 10% colected in the month of sale 55% in the month following sale, and 35% in the second month following sale. May sales totaled $42,000, and June sales totaled $30,000 inventory purchases at June 30 total $12,200 following month. The merchandise inventory at June 30 is $17,600 d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable for e The company maintains its ending inventory levels at 80%of the cost of the merchandise to be sold in the f. Land costing $4,600 will be purchased in July g. Dividends of $1,700 will be declared and paid in September. h. The cash balance on June 30 is $6,000; 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 $40,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Required: 1. Prepare a schedule of expected cash collections for July, August, and September and for the quarter in total. (Leave no cells blank- be certain to enter "O" wherever required. Do not round intermediate calculations. Omit the "$" sign in your response.) Schedule of Expected Cash Collections September Quarter Cash sales Sales on account May June July August September Total cash collections 2. Prepare the following for merchandise Inventory a. A merchandise purchases budget for July, August, and September, (Imput all amounts as positive values. Do not round intermediate calculations. Omit the "$" sign in your response.) Merchandise Purchases Budget JulyAugust Budgeted cost of goods sold (Cick to se :)|(Click to selec Total needs (Click to se (Cick to selec Required inventory purchases b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total. (Leave no cells blank be certain to enter " wherever required. Omit the "$" sign in Schedule of Expected Cash Disbursements Accounts payable, June 30 July purchases August purchases Total cash 3. Prepare a cash budget for July, August, and September and for the quarter n total, (Input all amounts as positive values except cash deficiency repayments and interest which should be indicated by a minus sign. Total Financing should be indicated with a minus sign when the company is repaying amounts that were previously borrowed. Selling and Administrative expenses are paid in the month in which the expenses are incurred. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Products, Cash Budget For the Quarter Ended September 30 Cash balanoe, beginning Add collections from sales Total cash available Less disbursements: For inventory purchases For selling expenses For administrative expenses For land For dividends Excess (deficlency) of cash available disburse