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:

1. Budgeted monthly absorption costing income statements for July to October are as follows:
   

July August September October Sales $42, 000 $72, 090 $52, 000 $47,000 Cost of goods sold 24, 800 42, 800 30, 800 27, 800 Gross margin 17, 200 29, 206 21, 200 19, 200 Selling and administrative expenses: Selling expense 7, 800 12, 100 8,700 7,500 Administrative expense* 5, 750 7, 400 6,300 6,100 Total selling and administrative expenses 13, 550 19,500 15, 090 13, 600 Net operating income $ 3, 650 $ 9,700 $ 6,200 $ 5,600JANUS PRODUCTS, INC. Schedule of Expected Cash Collections July August September Quarter Cash sales Credit sales: May June July August September Total cash collections $ 69JANUS PRODUCTS, INC. Merchandise Purchases Budget July August September Total needsJANUS PRODUCTS, INC. Schedule of Expected Cash Disbursements July August September Quarter Accounts payable, June 30 July purchases August purchases September purchases Total cash disbursements 69 0For the Quarter Ended September 30 July August September Quarter Total cash available 0 0 0 0 Deduct: Disbursements: Total disbursements 0 0 0 Excess (deficiency) of cash available over disbursements Financing: Total financing 0 0 0 0