PROBLEM 8-24 Cash Budget with Supporting Schedules LO8-22, LO8-4, LO8-8E 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 has been assembled to assist in preparing a cash budget for the quarter: Page 403 a. Budgeted monthly absorption costing income statements for April-July are April MayJune July Sales Cost of goods sold Gross margin Selling and administrative expenses: $600,000 $900,000 $500,000 $400,000 420,000 630,000 350,000 280,000 180,000 270,000 150,000 120,000 79,000 120,000 62,000 51,000 45,000 52,000 41,000 38,000 Total selling and administrative expenses 124,000 172 000 103000 8900 Selling expense Administrative expense Net operating income $56,000 $ 98,000 47,000 $ 31,000 Includes $20,000 of depreciation each month