July April $750,000 511,00 219, May $910,000 637,00 273,000 $610, 427, 180,000 520.00 164,00 Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense Total selling and administrative expenses Net operating income 52.000 91.ee se, see 141,50e 77,50 110,00 68, 0 170,300 94,200 72,00 44, 116,600 66,400 $ $ 101.000 55,000 $ "Includes $33,000 of depreciation each month b. Sales are 20% for cash and 80% on account Sales on account are collected over a three-month period with 10% collected in the month of sale: 70% collected in the first month following the month of sale: and the remaining 20% collected in the second month following the month of sale February's sales totaled $285,000, and March's sales totaled $300.000 d. Inventory 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% is paid in the following month Accounts payable at March 31 for inventory purchases during March total $135100 e. Each month's ending Inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise Inventory at March 3115 $102.2002 Dividends of $40.000 will be declared and paid in April Land costing $48.000 will be purchased for cash in May h. The cash balance at March 31 is 562.000, the company must maintain a cash balance of at least 540.000 at the end of each month The company has an agreement with a local bank that allows the company to borrow in increments of $1000 at the beginning of each month, up to a total loan balance of $200.000. The interest rate on these loans is 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 quartier Required: 1. Prepare a schedule of expected cash collections for Apr May and June and for the quarter in total 2. Prepare the following for merchandise Inventory A merchandise purchases budget for Apr May and June b. A schedule of expected cash disbursements for merchandise purchases for Apr May, and June and for the quarter in total 3. Prepare a cash budget for April, May, and June as well as in total for the quarter Complete this question by entering your answers in the tabs below. Raq 2A Reg 28 Req3 Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total Schedule of Expected Cash Conections April May June Quarter Type here to search