need help with 3) and 4) cant seem to figure it out. use info posted below

3 and 4 below. the green highlighted answer for 3) should be 490,000 and 4) should be 537,775 but im not sure how to get to that.

Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for April-July are: April May June July $ 710,000 $ 880,000 $ 590,000 $ 490,000 497,000 616,000 413,000 343,000 213,000 264,000 177,000 147,000 Sales Cost of goods sold Gross margin Selling and administrative expenses : Selling expense Administrative expense* Total selling and administrative expenses Net operating income 89,000 108,000 70,000 49,000 49,500 67,200 43,400 47,000 138,500 175,200 113,400 96,000 $ 74,500 $ 88,800 $ 63,600 $ 51,000 *Includes $31,000 of depreciation each month. b. Sales are 20% for cash and 80% on account. c. 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 $275,000, and March's sales totaled $290,000. 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 $130,900. 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 31 is $99,400. f. Dividends of $38,000 will be declared and paid in April. g. Land costing $46,000 will be purchased for cash in May. h. The cash balance at March 31 is $60,000; the company must maintain a cash balance of at least $40,000 at the end of each month. 1. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $200,000. 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. Req 1 Req 2A Req 2B Req3 Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total. Schedule of Expected Cash Collections April May June Quarter $ 142,000 $ 176,000 $ 118,000 $ 436,000 Cash sales Sales on account: February March April May June Total cash collections 44,000 162,400 56,800 46,400 397,600 70,400 44,000 208,800 113,600 568,000 492,800 563,200 47,200 47,200 771,600$ 1,867,200 405,200 $ 690,400$ Req 1 Reg 2A Req 2B Req3 Prepare the following for merchandise inventory, a merchandise purchases budget for April, May, and June. Merchandise Purchases Budget April May June Budgeted cost of goods sold $ 497,000 $ 616,000 $ 413,000 Add: Desired ending merchandise inventory 123,2001 82,600 68,600 Total needs 620,200 698,600 481,600 Less: Beginning merchandise inventory 99,400 123,200 82,600 Required inventory purchases $ 520,800 $ 575,400$ 399,000 Reg 1 Req 2A Req 2B Req3 Prepare the following for merchandise inventory, a schedule of expected cash disbursements for merchandise purchases for April, May, and June, and for the quarter in total. Schedule of Expected Cash Disbursements for Merchandise Purchases April May June Quarter Beginning accounts payable 130,900 130,900 April purchases 260,400 260,400 520,800 May purchases 287,700 287,700 575,400 June purchases 199,500 199,500 Total cash disbursements 391,300 $ 548,100 $ 487,200 $ 1,426,600 May 40,400 $ 690,400 730,800 June Quarter 40,500 $ 60,000 771,600 1,867,200 812,100 1,927,200 Garden Sales, Inc. Cash Budget For the Quarter Ended June 30 April Beginning cash balance $ 60,000 $ Add collections from customers 405,200 Total cash available 465,200 Less cash disbursements: Purchases for inventory 391,300 Selling expenses 89,000 Administrative expenses 18,500 Land purchases Dividends paid 38,000 Total cash disbursements 536,800 Excess deficiency) of cash available over disbursements (71,600) Financing: Borrowings 112,000 Repayment Interest Total financing 112,000 Ending cash balance $ 40,400$ 548,100 108,000 36,200 46,000 487,200 70,000 12,400 1,426,600 267,000 67,100 46,000 38,000 1,844,700 82,500 738,300 (7,500) 569,600 242,500 48,000 (160,000) (4,320) (164,320) 78,180$ 160,000 (160,000) (4,320) (4,320) 78,180 48,000 40,500$ Use Question 5 from HW4 on CONNECT to complete the project requirements. Highlighted items represent check figures provided. 1) Let's prepare a balance sheet for Garden Sales, Inc. at the BEGINNING of the quarter March 31st The CONNECT problem provides beginning cash, Inventory and accounts payable balance as of March 31. To complete the balance sheet, we will have to calculate a few balances. a) Look at the Schedule of Expected Cash Collections that you completed on CONNECT. (CONNECT results) Remember the accounts receivable represents the sales that have already been made but payment is expected in the future. What would the accounts receivable balance be as of March 31? Feb $44,000 Mar $208,800 Total $252,800 b) Complete the asset side of the balance sheet including total assets. Assets (100,000+531,300)+130,900=S762,200 c) Include the total asset amount in the total liability & SH Equity box. Include the accounts payable amount from CONNECT and calculate the amount of retained earnings such that the balance sheet will balance. Cash Accounts Receivable Inventory Total current assets Plant Assets, net Total Assets Garden Sales, Inc Balance Sheet March 31 $60,000 Accounts Payable $130,900 $252,800 $99,400 Common Stock $100,000 $412,200 Retained Earnings $531,300 350,000 Total SH Equity $631,300 $762,200 Total liabilities & SH Equity $762,200 The company's president is concerned about its ability to borrow money on its line of credit. The bank has indicated they will reduce the total loan balance limit to $100,000. Because of this, the president wants to know how increased collection efforts and reduced inventory levels will impact the cash budget. The president suggests that sales continue to be 20% for cash and 80% on credit. However, credit sales for April, May, and June will be collected over a three-month period with 25% collected in the month of sale, 65% collected in the month following sale, and 10% in the second month following sale. This change in policy will not affect collection of sales from February and March. (Assume those are unchanged from your CONNECT problem.) 2) Using the president's revised assumptions, complete the revised cash collection schedule below. Because these changes will take effect April 1, all previous months' sales will be collected in accordance with the old policies. (Same as on CONNET) Revised Cash Collection Schedule Collections on Sales: April . June Quarter Cash sales 142,000 176,000 118,000 436,000 February credit sales: 44,000 44,000 March credit sales: 162.400 46,400 208.800 April credit sales: 142.000 369.200 56,800 568,000 May credit sales: 176,000 457,600 633,600 June credit sales: 118,000 118,000 Total cash collections 490.400 767.600 750.400 2.008.400 Next, the president suggests the company tighten the inventory level requirements such that ending inventory levels for April, May, and June would be only 15% of the cost of merchandise to be sold in the following month. The merchandise inventory and accounts payable at March 31 remains unchanged from the amount given in your CONNECT problem. Note - This will not change the March 31 inventory balance. 3) Using the president's new assumptions regarding inventory levels, complete the revised Inventory Purchasing Budget. July 343000 Revised Inventory Purchasing Budget April May Budgeted cost of goods sold 497000 616000 Add desired ending Inventory 92400 61950 Total needs 589400 677950 Less beginning merchandise inventory 74550 92400 Required inventory purchases 514850 585550 June 413000 51450 464450 61950 402.500 4) The company has been postponing payments to supplier for quite some time such that the president does not believe they can change their payment policies. (Percentages used in CONNECT will not change). The president is hoping the reduced inventory amounts will be enough to conserve cash. Using the same payment policy from CONNECT, complete the Revised Cash Disbursements Schedule below. Revised Cash Disbursements for Inventory April May June Beginning accounts payable 130900 April purchases 257425 257425 May purchases 292775 292775 June purchases 201250 Total cash disbursements for Inventory 388325 550200 494025 Quarter 130900 514850 585550 201250 14.32.550