LUSSHY Inc. is a spa products to the hotel industry (the company is not a manufacturer). Management is planning its cash needs for the month of April. The following information has been assembled to assist in preparing a cash budget for April. 1. Budgeted monthly income statements for April and May are as follows: April May Sales $470,000 $710,000 Cost of goods sold 336,000 504,000 Gross margin 134,000 206,000 Less: Operating expenses Selling expense 53,200 96,000 Administrative expense 46000 41.600 99.200 137,600 5.34.800 5.68.400 Total operating expenses Net income 2. Sales are 5% cash and 95% on account. 3. Sales on account are collected over a two-month period in the following pattern: 25% collected in the month of sale, 75% collected in the month following the sale. March sales totalled $300,000. 4. Inventory purchases are paid 35% in the month of purchase. The remaining is paid in the following month. Accounts payable at March 31 for inventory purchases during March is $100,000. 5. At the end of each month, inventory must be on hand equal to 10% of the cost of the merchandise to be sold in the following month. The merchandise inventory at March 31 is $67,200. 6. Dividends of $125,000 will be declared and paid in April. 7. Land will be sold for$25,000 cash in April. 8. Selling and administrative expenses are paid when incurred. Administrative expenses include $23,000 of depreciation. 9. The cash balance at March 31 is $ 10,000 Required: 1. Prepare a schedule of expected cash collections from sales for April, 2. Prepare the following for merchandise inventory: 1. An inventory purchases budget for April 2. A schedule of expected cash disbursements for inventory for April. 3. Prepare a cash budget for April. Comment on the company's cash position. Is there any action that should/can be taken?