Please find attached problem, with the mistakes. Please also provide a new explanation for the question with mistakes.

' Gnome File Edit View History Bookmarks People Window Help 65:73; g LI-l G $ "5-\" I10} 50503) Wed4:0lJPM FewezAlnmmorl Q I 0 I [m Ot-laptartght xKuwmwwmmx\\u ( C l G) ezto.mheduoation.oomlhm.tpx j} l G 3 Apps @ University Search l... D Onltne Registration e In Defense of Food... '0' J2 10-13 W Golf... '3 Message Mlnder W... a MOTEGI RACING... Q In Defense of Food... I] Grad students bull... Garden Sales, Inc., sells garden supplies. Management ls planning its cash needsfar the second quarter. The company usually has to borrow money during this quarter to support peak sal at lawn care equipment, which occur during May. The Following information has been assembled to assist in preparing a (ash budget for the quarter: a. Budgeted monthly absorption costing income statements for ApriHuly are: hpl'l May June July Sales $ 530,000 $ 730,000 $ 430,000 $ 330,000 Cost of goods sold 371,000 511,000 301,000 231,000 Gross margin 159,000 219,000 129,000 99,000 Selllng and administrative expenses: Setllng expense 13,090 93,090 54pm 33,000 Administrative expense\" 41,500 55,200 33,800 31,000 Total selling and admln'strative expenses 114,500 140,200 37,300 64,000 Net operatlng income 5 44,500 E 70,000 3 41,200 5 35,000 t 'lncluda $15,000 of depreciation each month. b.8ales are 20% lor cash and 80% on account. 0. Sala on account are collected over a threemonth period with 10% mllected in the month ofsale: 50% collected in the flrst month following the month of sale; and the remaining 10% collected in the semnd month following the month of sale. February's sales totaled $155,000, and March's sales totaled $215,000. d.lnventory purchases are paid lor within 15 days. 'l'herefore. 50% ct a month's lnventory purmeses are paid for in the month of purchase. The remalning 50% is pald in the following month. Accounts payable at March 31 For inventory purchases during March total 507,300, e.Each month's ending inventory must equal 20% 01 the 0061 of the merchandise to be sold in the following month. The merchand'sa inventory at March 31 is $74,200. t. Dividends of $23,000 will be declared and paid in April. g.Land ousting $31,000 will be purchased for cash in May. h.The (ash balance at March 31 is 545,000; the company must maintain a (ash balance ofatleast $40,000 at the end of each month. l. The company has an agreement with a Eocal bank that allows the company to borrow in increments of $1,000 at the beginning oi each month, up to a tote! loan balance of $200,000. The interest rate on these loans is 1% per month and for simpliclty we will assume that intemst is not compounded. The company would, as far as it is able, repay the loan plus amumulated interest at the end of the quarter. ' Gimme File Edi'l View History Bookmarks Peaple Winduw Help . G) eztu.mheduce1ion.oomlhm .tpx Required: 1. Prepare a schedule of expeded cash oollecllons for April, May, and June. and forlhe quarier in latal. Answer is complete and correct Cash sales 5 1M,Wl 5 146.0Wl 5 86,000.] 5 333.000 Salw on amount: I I February 12,400'1I 12,400 March 1375mi 17290.] 154,300 April 42,400J 339290| 42.4w 424,000 May 53.4004 467.200.]' 525.500 June | 34,490\"! 34,400 Total cash mllech'ona S 293.400 5 560,800 i5 630.000 5 1,489,200 2. Prepare the following for merchandim invenmry: a. A rnerchandlse purchases budget for April. May, and June. Answer is complete and correct Budgeted ml oi goods sold $ 371,wl$ 511,0W $ 301,0DOJ .Md: Desired ending merchandise inventory J 102.2004 602W 482W Tmal needs 473,200 571,200 347,200 Lesa: Beginn'ng rnentuendise 'Iwerm J 74.2w 102,20M 6020M i Required invenlury purchases 5 399.000 l5 469.000 .5 287.000 I; '3) at 4a It) mam: w:n1 PM FawazAISIrmm-rl q 55 ' Ohmrne File Edi'l View History Bookmarks People Window Help 9513', 51".\" LI-l {9 $ 'g' I1)l)B4%CI Wed4:01 PM FawezAlSh-mmlrl Q 55 i? .. .. . . G) ezto.rnheduce1ion.oomlhm.tpx ' a b. A schedule o'lexpec'led cash disbursements for merchandise purchases for April, May. and June, and for the quarter in tmal Answer is complete but not entirely correct Beginning acmums payable $ 97.3w 5 97.300 April purchases 1999M 199.50w 399,000 May purchases zumw' 23.450)( 257.950 June pumhalcs \"ij 143,500 Total ush disbursements S 296.300 5 434,000 5 166.950 5 897,750 3. Prepare a cash budget for April, May, and June as well as in total for he quarter ((2th deciency. repayment: and interest should be indicated by I minus llgn.] Answer is complete but not entirely correct Beginning cash balanw _ Add calleidions from (manners 293,4l'iw sanguw, w 1,493,200i Tutal cash available 343,900 601,400 6?0,200 1,543,200 Less (ash disbursements: Purdiases fur inventory 296,800.; 434,000.) 168.960X' 137,7sz Selling expenses 735W 933W SLOW 220.00%; Administrative expenses mm mm; 13am.) semi Land purd'iases 0,] 31,000,) 0.] 31,000.) . , . ' Ollmrne File Edi'l View History Bookmarks Paapla Winduw Help 9513', 5.9% LI-l {9 $ 'g' 1)))B4%Cl Wad4:01 PM FewezAlSl'lammIrl Q 55 . i G) ezt0.mhaducalion.oomlhm.tpx 7.: i ' a 3. Prepare a cash budget fur April, May, and June as well as in halal Fur Iha quarlen (Ca-h deficiency, replymanu and interest should in indicated by a minus sign.) Answer is complete but not entirely correct I Beginning cash balann 45.000J' iMd collaclions from euslorners - 1,493,2005E Total rash available 343.900 601,400 670,200 1,543,200 13$ cash disbursements: Purchases lnr inventory 200.000,]I 431.000,] 100,950x' amm Selling expanses 73.0W' 93,0004 54.0w 220.000J' Adminimll've expanses I MMXI IDIW- 13.800" W Lend purelraraea 0,45 31,000,) 7 0,; 31.000\"!l Dividends paid 23,000.; 0.) ' o.) 23,000.}l Tonal cash dimureemenle 7 432,300 500,200 230,750 1,270,750 Ens-cs (deciency) of cash available over dnburcemenl (88,900) 3,200 430,450 2?2,450 Financing: I Borrowings 130.0mx' 37me mm Repayment w! 0.1 (187mm (167,000))? Interest ' 130000!' 37,0003: (1 mnemx' (3.16mi Tolal linanu'ng 260,000 H.000 (337,160) (3,160) Ending cash balance 5 171.100 5 77,200 ls 93,290 5 269,290 Requirement 1 February sales March sales April sales May sales June sales Total cash collections Schedule of expected cash collections April May June Total $48,000 $0 $0 $48,000 $210,000 $52,500 $0 $262,500 $97,500 $234,000 $58,500 $390,000 $0 $147,500 $354,000 $501,500 $0 $0 $57,500 $57,500 $355,500 $434,000 $470,000 $1,259,500 Workings: April February sales: $320,000 15% March Sales: $350,000 60% $350,000 15% April sales: $390,000*25% $390,000*60% $390,000*15% May sales: $590,000*25% $590,000*60% June sales: $230,000*25% May June Total $48,000 $210,000 $52,500 $97,500 $234,000 $58,500 $147,500 $354,000 $57,500 Requirement 2 May Sales ($590,000*15%) June Sales {$230,000*(60%+15%)} Total accounts receivable at June 30 $88,500 $172,500 $261,000 Down Under Products Limited Production Budget April Budgeted sales in units 82,000 Add desired ending inventory (15%*Next month sales) 13,500 Total needs 95,500 Less beginning inventory 12,300 Required production 83,200 May 90,000 18,300 108,300 13,500 94,800 June 122,000 14,400 136,400 18,300 118,100 Quarter 294,000 14,400 308,400 12,300 296,100 Requirement 1 Cash sales (Total sales*20%) Credit sales: February ($155,000 80% 10%) March ($215,000 80% 80%, 10%) April ($530,000 80% 10%, 80%, 10%) May. ($730,000 80% 10%, 80%) Schedule of Expected Cash Collections April $106,000 $12,400 $137,600 $42,400 June ($430,000 80% 10%) Total cash collections May $146,000 $298,400 $17,200 $339,200 $58,400 $560,800 April $371,000 $102,200 $473,200 $74,200 $399,000 May $511,000 $60,200 $571,200 $102,200 $469,000 Requirement 2a Merchandise Purchases Budget Budgeted cost of goods sold Add: Desired ending inventory (20% of next month's COGS) Total needs Less: Beginning inventory Required inventory purchases Requirement 2b Schedule of Expected Cash Disburemets for Merchandise Purchases April May Beginning accounts payable $97,300 April purchases ($399,000*50%) $199,500 $199,500 May purchases ($469,000*50%) $234,500 June purchases ($287,000*50%) Total cash disbursements $296,800 $434,000 Requirement 3 Garden Sales Inc. Cash Budget For the Quarter ended June 30 April $45,000 $298,400 $343,400 May $40,600 $560,800 $601,400 $296,800 $73,000 $40,000 $0 $23,000 $432,800 -$89,400 $434,000 $93,000 $40,200 $31,000 $0 $598,200 $3,200 Beginning Cash balance Add collections from customers Total cash available Less disbursements: Purchases for inventory Selling expenses Administrative expenses (excluding depreciation) Land purchases Dividends paid Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayment Interest Total financing Ending Cash balance $130,000 $0 0 $130,000 $40,600 $37,000 $0 0 $37,000 $40,200 June $86,000 Quarter $338,000 $42,400 $467,200 $34,400 $630,000 $12,400 $154,800 $424,000 $525,600 $34,400 $1,489,200 June $301,000 $46,200 $347,200 $60,200 $287,000 e Purchases June $23,450 $143,500 $166,950 Quarter $97,300 $399,000 $257,950 $143,500 $897,750 June $40,200 $630,000 $670,200 Quarter $45,000 $1,489,200 $1,534,200 $166,950 $54,000 $18,800 $0 $0 $239,750 $430,450 $897,750 $220,000 $99,000 $31,000 $23,000 $1,270,750 $263,450 -$167,000 -$3,160 -$170,160 $260,290 $167,000 -$167,000 -$3,160 -$3,160 $260,290 Requirement 1 February sales March sales April sales May sales June sales Total cash collections Schedule of expected cash collections April May June Total $48,000 $0 $0 $48,000 $210,000 $52,500 $0 $262,500 $97,500 $234,000 $58,500 $390,000 $0 $147,500 $354,000 $501,500 $0 $0 $57,500 $57,500 $355,500 $434,000 $470,000 $1,259,500 Workings: April February sales: $320,000 15% March Sales: $350,000 60% $350,000 15% April sales: $390,000*25% $390,000*60% $390,000*15% May sales: $590,000*25% $590,000*60% June sales: $230,000*25% May June Total $48,000 $210,000 $52,500 $97,500 $234,000 $58,500 $147,500 $354,000 $57,500 Requirement 2 May Sales ($590,000*15%) June Sales {$230,000*(60%+15%)} Total accounts receivable at June 30 $88,500 $172,500 $261,000 Down Under Products Limited Production Budget April Budgeted sales in units 82,000 Add desired ending inventory (15%*Next month sales) 13,500 Total needs 95,500 Less beginning inventory 12,300 Required production 83,200 May 90,000 18,300 108,300 13,500 94,800 June 122,000 14,400 136,400 18,300 118,100 Quarter 294,000 14,400 308,400 12,300 296,100 Requirement 1 Cash sales (Total sales*20%) Credit sales: February ($155,000 80% 10%) March ($215,000 80% 80%, 10%) April ($530,000 80% 10%, 80%, 10%) May. ($730,000 80% 10%, 80%) Schedule of Expected Cash Collections April $106,000 $12,400 $137,600 $42,400 June ($430,000 80% 10%) Total cash collections May $146,000 $298,400 $17,200 $339,200 $58,400 $560,800 April $371,000 $102,200 $473,200 $74,200 $399,000 May $511,000 $60,200 $571,200 $102,200 $469,000 Requirement 2a Merchandise Purchases Budget Budgeted cost of goods sold Add: Desired ending inventory (20% of next month's COGS) Total needs Less: Beginning inventory Required inventory purchases Requirement 2b Schedule of Expected Cash Disburemets for Merchandise Purchases April May Beginning accounts payable $97,300 April purchases ($399,000*50%) $199,500 $199,500 May purchases ($469,000*50%) $234,500 June purchases ($287,000*50%) Total cash disbursements $296,800 $434,000 Requirement 3 Garden Sales Inc. Cash Budget For the Quarter ended June 30 April $45,000 $298,400 $343,400 May $40,100 $560,800 $600,900 $296,800 $73,000 $26,500 $0 $23,000 $419,300 -$75,900 $434,000 $93,000 $40,200 $31,000 $0 $598,200 $2,700 Beginning Cash balance Add collections from customers Total cash available Less disbursements: Purchases for inventory Selling expenses Administrative expenses (excluding depreciation) Land purchases Dividends paid Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayment Interest Total financing Ending Cash balance $116,000 $0 0 $116,000 $40,100 3480 760 $38,000 $0 0 $38,000 $40,700 June $86,000 Quarter $338,000 $42,400 $467,200 $34,400 $630,000 $12,400 $154,800 $424,000 $525,600 $34,400 $1,489,200 June $301,000 $46,200 $347,200 $60,200 $287,000 e Purchases June $234,500 $143,500 $378,000 Quarter $97,300 $399,000 $469,000 $143,500 $1,108,800 June $40,700 $630,000 $670,700 Quarter $45,000 $1,489,200 $1,534,200 $378,000 $54,000 $18,800 $0 $0 $450,800 $219,900 $1,108,800 $220,000 $85,500 $31,000 $23,000 $1,468,300 $65,900 -$154,000 -$4,240 -$158,240 $61,660 $154,000 -$154,000 -$4,240 -$4,240 $61,660 Requirement 1 February sales March sales April sales May sales June sales Total cash collections Schedule of expected cash collections April May June Total $48,000 $0 $0 $48,000 $210,000 $52,500 $0 $262,500 $97,500 $234,000 $58,500 $390,000 $0 $147,500 $354,000 $501,500 $0 $0 $57,500 $57,500 $355,500 $434,000 $470,000 $1,259,500 Workings: April February sales: $320,000 15% March Sales: $350,000 60% $350,000 15% April sales: $390,000*25% $390,000*60% $390,000*15% May sales: $590,000*25% $590,000*60% June sales: $230,000*25% May June Total $48,000 $210,000 $52,500 $97,500 $234,000 $58,500 $147,500 $354,000 $57,500 Requirement 2 May Sales ($590,000*15%) June Sales {$230,000*(60%+15%)} Total accounts receivable at June 30 $88,500 $172,500 $261,000 Down Under Products Limited Production Budget April Budgeted sales in units 82,000 Add desired ending inventory (15%*Next month sales) 13,500 Total needs 95,500 Less beginning inventory 12,300 Required production 83,200 May 90,000 18,300 108,300 13,500 94,800 June 122,000 14,400 136,400 18,300 118,100 Quarter 294,000 14,400 308,400 12,300 296,100 Requirement 1 Cash sales (Total sales*20%) Credit sales: February ($155,000 80% 10%) March ($215,000 80% 80%, 10%) April ($530,000 80% 10%, 80%, 10%) May. ($730,000 80% 10%, 80%) Schedule of Expected Cash Collections April $106,000 $12,400 $137,600 $42,400 June ($430,000 80% 10%) Total cash collections May $146,000 $298,400 $17,200 $339,200 $58,400 $560,800 April $371,000 $102,200 $473,200 $74,200 $399,000 May $511,000 $60,200 $571,200 $102,200 $469,000 Requirement 2a Merchandise Purchases Budget Budgeted cost of goods sold Add: Desired ending inventory (20% of next month's COGS) Total needs Less: Beginning inventory Required inventory purchases Requirement 2b Schedule of Expected Cash Disburemets for Merchandise Purchases April May Beginning accounts payable $97,300 April purchases ($399,000*50%) $199,500 $199,500 May purchases ($469,000*50%) $234,500 June purchases ($287,000*50%) Total cash disbursements $296,800 $434,000 Requirement 3 Garden Sales Inc. Cash Budget For the Quarter ended June 30 April $45,000 $298,400 $343,400 May $40,100 $560,800 $600,900 $296,800 $73,000 $26,500 $0 $23,000 $419,300 -$75,900 $434,000 $93,000 $40,200 $31,000 $0 $598,200 $2,700 Beginning Cash balance Add collections from customers Total cash available Less disbursements: Purchases for inventory Selling expenses Administrative expenses (excluding depreciation) Land purchases Dividends paid Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayment Interest Total financing Ending Cash balance $116,000 $0 0 $116,000 $40,100 3480 760 $38,000 $0 0 $38,000 $40,700 June $86,000 Quarter $338,000 $42,400 $467,200 $34,400 $630,000 $12,400 $154,800 $424,000 $525,600 $34,400 $1,489,200 June $301,000 $46,200 $347,200 $60,200 $287,000 e Purchases June $234,500 $143,500 $378,000 Quarter $97,300 $399,000 $469,000 $143,500 $1,108,800 June $40,700 $630,000 $670,700 Quarter $45,000 $1,489,200 $1,534,200 $378,000 $54,000 $18,800 $0 $0 $450,800 $219,900 $1,108,800 $220,000 $85,500 $31,000 $23,000 $1,468,300 $65,900 -$154,000 -$4,240 -$158,240 $61,660 $154,000 -$154,000 -$4,240 -$4,240 $61,660