Janus Products, Inc. is a merchandising company that sells binders, paper, and other school supplies. Th 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 a Budgeted monthly absorption costing income statements for July to October are as follows $46,000$7 Sales Cost of goods sold $56,000$51:000 32,400 29,400 26,400 Gross margin 19,60031,600 23,600 21,600 and administrative expenses Selling expense Administrative expense 9,000 12900 5,950 9,100 6.700 7.900 6500 7.800 Total selling and administrative expenses 14950 20.700 15800 14400 $ 4.650$10.900 7,8007200 Nel operating income includes $2:300 depreciation each month Sales are 20% for cash and 80% on credit month following sale and 20% in the second month following sale May sales lotated S3 , 70%atthe 6 000: an ,Credit sales are collected over a three-month period with 10% coEected n Ihe n onth of sale June sales totalled $42 000 d inventory purchases are paid for within 1 day Therefore 50% of a months in entory pr