Problem 8-24 (Algo) Cash Budget with Supporting Schedules [LO8-2, LO8-4, LOB-8] Gerden Saless, incorporeded, selis garden supplies. Management is planining its cash needs for the second quarter. The compamy thisinty has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following intoritiation has been assembled to assist in preparing o cash budget for the querter: 7 budigeted montinly absorption costing income statements for Apri--July are: b. Sales are 20% for cash and 80% on account. c Soles on account are collected over a three-month period with 105 collected in the month of sale. 705 coliected 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 $265,000, and March's sales toteled $280,000. a. inventery purchoses are poid for within 15 days. Therefore, 50k of a month's inventory purchases are paid for in the month of parchase. The remnining 50% is pald in the following month. Accounts payable at March 31 for inventory purchases during Mareh total 5126,700 e. Each month's ending inventory must equal 20% of the cost of the merchandise to be sald in the following month, The merchandise inventory at March 31 is $96,600. f. Oividends of $36.000 will be declared and paid in April. 9. Land costing $44,000 will be purchased for cash in Moy. h. The cash bolonce at March 31 is $58.000; the company must meintain a cash batance of at least $40.000 at the end of each month. 1. The company has en agreement with a local bank that allows the company to bourow in increments of $1,000 at the beginning of ench month, up to a totol loan balance of $200.000. The interest rate on these loans is 13 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 quartet Required: 1. Prepare a schedule of expected cash coliections for April, May, and June, and for the quarter in total, 2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for April. May, and June, b. A schedule of expected cash disbursements for merchandise Durchases for April. Mav. and June. and for the ouarter in total. I Dividends of $36,000 will be declared and paid in April. 7. Land Josting $44,000 will be purchased for cash in May. h. The Cash balonce ot March 31 is $58,000; the company must maintain a cash balance of at least $40,000 at the end of each morth I The compony 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 Bissume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumuiated interest at the enid of the quarter. Required: Li. Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total. 2. Prepare the following for merchandise inventory: 4. A merchandise purchases budget for Aprili, May, and June. b. A schedule of expected cash disbursements for merchandise purchases for Aprili, May, and June, and for the quarter in total. 3. Prepare a cash budget for April, May, and June as well as in total for the quarter. Complete this question by entering your answers in the tabs below. Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total. h. The cash balance at March 31 is 250 ed for cash in May. 1. The company has an agreement with a local bank that must maintain a cash balance of at least $40.000 ot the end of eaich . each month, up to a total loan balance of $200,000. The interest rate on these loans is 1% per month and for simplicity with assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumuiated interted in end of the quarter. Required: 1. Prepare a schedule of expected cash collections for Aprili, May, and June, and for the quarter in total. 2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for April, May, and June. b. A schedule of expected cash disbursements for merchandise purchases for April. 7. Prepare a cash budget for April, May, and June as well as in total for the quartec. Complete this question by entering your answers in the tabs below. Prepare the following for merchandise inventory, a merchandise purchases budget for April, May, and June, Required: 1. Prepare a schedule of expected cash collections for Aprili, May, and June, and for the quarter in total. 2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for Aprili, May, and June. b. A schedule of expected cash disbursements for merchandise purchases for April, May, and June, and for the cuar 3. Prepare a cash budget for April, May, and June as well as in total for the quarter. Complete this question by entering your answers In the tabs below. Prepare the following for merchandise inventory, a schedule of expected cash disbursements for merchandise purchiz April, May, and June, and for the quarter in total. A. A merchandise purchases budget for April, May, and June. 6. A schedule of expected cash disbursements for merchandise purchases for April, May, and June, and for the quarter in totni, 3. Prepare a cash budget for April, May, and June as well as in total for the quarter. Complete thil question by entering your answers in the tabs below. Prepare a cash budget for April, May, and June as well as in total for the quarter. (Cash deficiency, repayments andidinterest should be indicated by a minus sign.)