please answer with explanations

Uuestions 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 was assembled to assist in preparing a cash budget for the quarter: Budgeted monthly income statements for April-July are: Sales... Cost of goods sold Gross margin April May June July S600,000 $900.000 $500.000 $400,000 420.000 630.000 250.000 280,000 180.000 270.000 150.000 120.000 Less operating expenses: Selling expense. Administrative expense* Total expenses. Net income. 79,000 45.000 124.000 56,000 120.000 52.000 172.000 98.000 62.000 41.000 103.000 47.000 51.000 38.000 87.000 31,000 *Includes $20.000 depreciation each month. Sales are 20% for cash and 80% on account. b. Sales on account are collected over a three-month period in the following ratio: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 CH Dwing the month of sale. February's sales totaled $200,000, and March's sales totaled $300,000. c. Inventory purchases are paid for within 17 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 $126,000. d. At the end of each month, inventory must be on hand equal to 20% of the cost of the merchandise to be sold in the following month. The merchandise inventory at March 31 is $84.000. Dividends of S49,000 will be declared and paid in April. Equipment costing $16,000 will be purchased for cash in May. g. The cash balance at March 31 is $52.000; the company must maintain a ash balance of at least $40.000 at all times. h. The company can borrow from its bank as needed to bolster the Cash account. Borrowings and repayments must be in multiples of $1.000. All borrowings take place at the beginning of a month, and all repayments are made at the end of a month. The annual interest rate is 129. Compute interest on whole months (1/12, 2/12, and so forth). I Required: 1. Prepare a schedule of expected cash collections from sales for each of the months April May. June, and for the quarter in total. 2. Prepare the following budgets An inventory purchases budget for each of the months April May, and June. b. A cash budget for the third quarter, by month as well as in total for the quarter. Show borrowings from the company's bank and repayments to the bank as needed to maintain the minimu cash ( month. Accounts payable at March 31 for inventory purchases during March total $126,000. d. At the end of each month, inventory must be on hand equal to 20% of the cost of the merchandise to be sold in the following month. The merchandise inventory at March 31 is $84,000. Dividends of S49,000 will be declared and paid in April. f. Equipment costing $16,000 will be purchased for cash in May. g. The cash balance at March 31 is $52,000; the company must maintain a cash balance of at least $40,000 at all times. h. The company can borrow from its bank as needed to bolster the Cash account. Borrowings and repayments must be in multiples of $1,000. All borrowings take place at the beginning of a month, and all repayments are made at the end of a month. The annual interest rate is 12% Compute interest on whole months (1/12, 2/12, and so forth) Required: 1. Prepare a schedule of expected cash collections from sales for each of the months April May, June, and for the quarter in total. 2. Prepare the following budgets: An inventory purchases budget for each of the months (April, May, and June. b. A cash budget for the third quarter, by month as well as in total for the quarter. Show borrowings from the company's bank and repayments to the bank as needed to maintain the minimum cash balance. a