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 he been assembled to assist in preparing a cash budget for the quarter: a Budgeted monthly absorption costing Income statements for July to October sre as follows: July $57,eee 30,00 25,200 August $87,00 48, 38,20 September October $67. $62,ace 36,860 33, 38,268 28,200 Sales Cost of goods sold Gross margin Selling and advinistrative expenses: Selling price Administrative expense Total selling and adeinistrative pense Net operating income 15,100 12,2 12,380 6,500 18.882 $ 7,480 24, 18, $12,200 9, 7. 15, $11,500 $14,200 includes $2.650 depreciation esch month b. Sales are 20% for cash and 90% on credit c Credit sales are collected over a three-month period, with 10% collected in the month of sale, 70% In the month fo owing sale, and 20% in the second month following sale. May sales totaled $47,000, and June sales totalled $53,000 dInventory purchases are paid for within 15 days. Therefore, 50% of a month's Inventory purchases are paid for in the month of purchase. The remaining 50% sre paid in the following month. Accounts payable for inventory purchases st June 30 total $20.200. e. The company maintains its ending Inventory levels st 75% of the cost of the merchandise to be sold in the following month. The merchandise Inventory at June 30 s $26.500 Land costing $5.350 will be purchased in July. 9. Dividends of $1,850 will be declared and paid in September h. The cash balance on June 30 - $9,700; the company must maintain a cash balance of at least this amount at the end of each month L The company has an agreement with a local bank that allows 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 16 per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as table, repsy the lon 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 JANUS PRODUCTS, INC. Bohedule of Expected Cach Collections July August September Quarter Cash Sales Crossles May June July ALGUS Selber Total cash collections 2. Prepare the following for merchandise Inventory .. A merchandise purchases budget for July August, and September JANU & PRODUCTS, INC. Merchandico Purohacer Budget July August September Totalno b. A schedule of expected cash olsbursements for merchandise purchases for July, August, and September and for the quarter in total. Quarter JANUS PRODUCTS, INC. Bohedule of Expected Cach Disbursements July August Beptember Accounts payable June 30 Lily purchases August purchases September purchases Total cash disbursements 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 Indicated by a minus sign. Lesve no blank - be certain to enter "0" wherever required.) JANUB PRODUCTS, INC. Cach Eudget For the Quarter Ended September 30 July August September Quarter Total cash available Deduct: Disbursements: Total disbursements Excess deficiency) of cash available over disbursements Financing Total trancing 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 he been assembled to assist in preparing a cash budget for the quarter: a Budgeted monthly absorption costing Income statements for July to October sre as follows: July $57,eee 30,00 25,200 August $87,00 48, 38,20 September October $67. $62,ace 36,860 33, 38,268 28,200 Sales Cost of goods sold Gross margin Selling and advinistrative expenses: Selling price Administrative expense Total selling and adeinistrative pense Net operating income 15,100 12,2 12,380 6,500 18.882 $ 7,480 24, 18, $12,200 9, 7. 15, $11,500 $14,200 includes $2.650 depreciation esch month b. Sales are 20% for cash and 90% on credit c Credit sales are collected over a three-month period, with 10% collected in the month of sale, 70% In the month fo owing sale, and 20% in the second month following sale. May sales totaled $47,000, and June sales totalled $53,000 dInventory purchases are paid for within 15 days. Therefore, 50% of a month's Inventory purchases are paid for in the month of purchase. The remaining 50% sre paid in the following month. Accounts payable for inventory purchases st June 30 total $20.200. e. The company maintains its ending Inventory levels st 75% of the cost of the merchandise to be sold in the following month. The merchandise Inventory at June 30 s $26.500 Land costing $5.350 will be purchased in July. 9. Dividends of $1,850 will be declared and paid in September h. The cash balance on June 30 - $9,700; the company must maintain a cash balance of at least this amount at the end of each month L The company has an agreement with a local bank that allows 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 16 per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as table, repsy the lon 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 JANUS PRODUCTS, INC. Bohedule of Expected Cach Collections July August September Quarter Cash Sales Crossles May June July ALGUS Selber Total cash collections 2. Prepare the following for merchandise Inventory .. A merchandise purchases budget for July August, and September JANU & PRODUCTS, INC. Merchandico Purohacer Budget July August September Totalno b. A schedule of expected cash olsbursements for merchandise purchases for July, August, and September and for the quarter in total. Quarter JANUS PRODUCTS, INC. Bohedule of Expected Cach Disbursements July August Beptember Accounts payable June 30 Lily purchases August purchases September purchases Total cash disbursements 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 Indicated by a minus sign. Lesve no blank - be certain to enter "0" wherever required.) JANUB PRODUCTS, INC. Cach Eudget For the Quarter Ended September 30 July August September Quarter Total cash available Deduct: Disbursements: Total disbursements Excess deficiency) of cash available over disbursements Financing Total trancing