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 borrow money during the third quarter to support peak sales of back-to-school during August. The following information has been assembled to the quarter in preparing a cash budget for a.Budgeted monthly absorption costing income statements for July-October are as folows: Sales 45,000 $ 85,000 $ 55,000 $ 50,000 Cost of goods sold Gross margin Selling and administrative expenses: 32,000 50,000 38,000 35,000 13,000 35,000 17,000 15,000 Selling expense Administrative expense .200 10,100 8.200 7,700 5,200 7,000 Total selling and administrative expenses 11,400 17,100 s 1,600 $ 17.900 6300 5,700 14,500 13,400 2,500 $ 1.600 Net operating income Includes $1,100 depreciation each month. b. Sales are 10% for cash and 90% on credit c. Credit sales are collected over a three-month period with 15% coloded n te month of asps% n the month following sale, and 20% in the second month followrg sale May sales totaoa ssroo, and June sales totaled $43,000. d. Inventory purchases are paid for within 15 days. Therefore, 50% of a months inventory purchases ie paid for in the month of purchase. The remaining 50% is paid in the folow g month. Accounts payable for inventory purchases at June 30 total $11.700 The company maintains its ending inventory levels at 80% of the cost ofte merchandse to be sold n the following month. The merchandise inventory at June 30 is $25,600 f. Land costing $4,700 will be purchased in July g. Dividends of $1,200 will be declared and paid in September h. The cash balance on June 30 is $5.000; the company must maintain a cash balance of at least this . The company has an agreement with a local bank that allows it to borrow in increments of $1,000 at amount at the end of each month, the beginning of each month, up to a total loan balance of $40,000. The interest rate on these loans is 1% per month, and for simplicity we will assume that interest is not compounded The company would as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Required: 1. Prepare a schedule of expected cash collections for July. August, and September and for the quarter in total. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Omit the "$" sign in your response.) Schedule of Expected Cash Collections 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. (Input all amounts as positive values. Do not round intermediate calculations. Omit the "$" sign in your response.) Merchandise Purchases Budget July August September Budgeted cost of goods sold (Click to select) (Click to select) Total needs Click to select)(Click to select) Required inventory purchases b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total. (Leave no cells blank-be certain to enter "O" wherever required. Omit the "$" sign in your response.) Schedule of Expected Cash Disbursements July August September Quarter Accounts payable, June 30 July purchases August purchases September purchases Total cash disbursements 3. Prepare a cash budget for July, August, and September and for the quarter in total. (Input all amounts as positive values except cash deficieney, repayments and interest which s indicated by a minus sign. Total Financing should be indicated with a minus sign when the hould be 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 "o" wherever required. Omit the "$" sign in your response.) Janus Products, Inc. Cash Budget For the Quarter Ended September 30 auaJuly pugust September Quarter Cash balance, beginning Add collections from sales Total cash available Less disbursements For inventory purchases For selling expenses For administrative expenses For land For dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayment Interest Total financing Cash balance, ending