Please give detailed explanations for both questions.

Foxglove Company, a groing retailer, is preparing its budget for the first half of the year assuming the following for Sales in each month ebruar Sales For budget purposes, the following assumptions are used- a. The company's Gross Margin is 20% b. All merchandise is purchased in the month prior to the mouth of Sale. c, 75% of merchandise purchases are made on credit with the rest paid in Cash. d For credit purchases, 30% is paid in the month of purchase, 50% in the month following and the remaining 20% in the second month after purchase. e Half of Sales are made on Credit with the other 50% in Cash each month. f Collections on credit sales are expected to be 60% in the month of sale and the remainder in the following month g. Selling and administrative expenses of $15,000 per month include $2,500 of depreciation expense. h. The copany incurs interest expense of $1,000 per month which it pays in Cash in March and June. i. Foxglove will be declaring a dividend of $10,000 in February and paying to shareholders in March. k. The budgeted balance in Retained Eamings on anary 31 is $250,000 15 Fosglove's budgeted cash disbursements related to merchandise purchases for the month of March would be: A $146,916 B. 5249,128 C. $200,156 D. $195,88S E. None of the above. 16 Foxglove's budgeted Retained Eamings balance at the end of February would be A $265,500 B. $278,000 C. $268,000 D. $270,500 E. None of the above