Please help with part 1

Chapter 8 Problem: Master Budgets Hogwarts Gardens sells garden supplies. Pomona Sprout, the CFO, is preparing the cash budget for the second quarter. The company usually borrows money during this quarter to support peak sales of mandrake supplies, which come to maturity during May. The following information has been assembled to assist in preparing a cash budget for the quarter: A) Budgeted Income Statements for April-July are: April $600,000 420.000 180,000 May $900,000 630.000 270,000 June $500,000 350.000 150,000 July $400,000 280.000 120,000 Sales Cost of Goods Sold Gross Profit Selling & Administrative Expenses: Selling Expenses Administrative Expenses Net Operating Income 79,000 45.000 $56,000 120,000 52.000 $98.000 62,000 41.000 $47.000 51,000 38.000 $31.000 (20,000) B) The Administrative Expenses include $20,000 of depreciation each month. C) Sales are expected to be 20% cash and 80% on account. D) Sales on account are typically collected over a 3-month period with 10% collected in the month of sale, 70% collected in the first month following sale, and the remaining 20% collected in the second month following sale. Bad Debts are not significant. February's sales were $200,000 and March's sales were $300,000 E) Inventory purchases are paid 50% in the month of sale and 50% in the month following sale. On March 31, the Accounts Payable balance for materials purchased during March total $126,000. F) Desired ending inventory is 20% of the cost of merchandise to be sold in the following month. March's inventory balance is $84,000. G) Dividends of $49,000 will were declared in March and will be paid in April. H) Land is expected to be purchased for $16,000 cash in May. 1) The cash balance on March 31 is $52,000. Hogwarts wants to maintain a cash balance of at least $40,000 every month. 3) Hogwarts has an agreement with Gringotts that allows the company to borrow in increments of $1,000 at the end of each month, up to a total loan balance of $200,000. The interest rate on these loans is 1% per month (assume interest is not compounded). The company will repay as much of the loan as possible, plus accumulated interest, at the end of each quarter. Required: 1) Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total, and identify the balance in Accounts Receivable at the end of June. 2) Prepare a merchandise purchases budget and a schedule of cash disbursements for merchandise purchases for April, May, and June, and for the quarter in total, and identify the balance in Accounts Payable at the end of June. 3) Prepare a cash budget for April, May, and June, as well as for the quarter in total