Problem 8-25 (Algo) Cash Budget with Supporting Schedules; Changing Assumptions (LO8-2, LOB-4, L08-8] Garden Sales, Inc, sells garden supplies. Management is planning its cash need for the second quarter. The company usually has to bonow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been able to assist in preparing a cash budget for the quater Budgeted monthly abortion costing income statements for April-July a Cast of wid Tatal selling and administrative expe 121, 08 "Includes $36,000 of depreciation each mont b. Sales are 20% for cash and 90% on account Sales on account are collected over a three-month period with 10% collected in the month of a 30% collected 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 totaled $300,000, and March's sales totaled $315,000 d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The reining 50% is paid in the following month. Accounts payable at March for inventory purchases during March $13200 Each month's ending inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise Intory at Mach 000 Dividend of $43,000 will be declared and paid in Ap Land $1000 will be paschased for cash in May The cash balance at March 21 is $65,000; the company must maintain a cash balance of at least $40,000 at the end of each month. The company has an agreement with a local bank that allows the company to bonow in increments of $1,000 at the beginning of 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 quarter The company's president is interested in knowing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending inventory assumptions as follow Sales continue to be 20% for cash and 80% on credit. However, credit sales from April, May and June as collected over a three- month period with 25% collected in the month of sale, lected in the month following sale, and 10% in the second month following a Credit sales from February and March are collected during the second quarter using the collection percentages specified in the main section b. The company maintains its ending inventory levels for April, May, and June at 15% of the cost of merchandise to be sold in the following month. The merchandise inventory at March 21 remains $98,000 and accounts payable for inventory purchases at March 21mins $237,200. Required: 1. Using the president's new assumptions in the quarter in total 2. Using the president's new assumptions in b. A schedule of expected cash a above, prepare a schedule of expected cash collections for April, May and June and for above, prepare the following for merchandise inventory 2. Using the president's new assumptions, prepare a cash budget for April, May and June, and for the quarter in total. Complete this question by entering your answers in the tab using the president's new assumptions, prepare a cach budget for April, May, and June, and for the qua For 30 < al Carb Problem 8-25 (Algo) Cash Budget with Supporting Schedules; Changing Assumptions (LO8-2, LOB-4, LOB-8] Garden Sales, Inc, els garden supplies. Management is planning its cash reeds for the second quarter. The company usually hat bonow 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 quar Budgeted monthly abortion costing income statements for April-July Cast of wid Selling and distri Selling pe Tatal selling and administrative sp 121,000 113, 121, July "Includes $36,000 of depreciation each month b. Sales are 20% for cash and 90% on account. Sales on account are collected over a three-month period with 10% collected in the month of 30% collected 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 totaled $300,000, and March's sales totaled $315,000 d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable at March 2 for inventory purchase during March $137,200 Each months ending inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise Intory at March 31,000 Dividends of $43,000 will be declared and paid in April Landing $1,000 will be purchased for cash in May h. The cash balance at March 21 is $65,000; the company must maintain a cash balance of at least $40,000 at the end of each month. The company has an agreement with a local bank that allows the company to bonow 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 bans is per month and for simplicity we wil 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 quarter The company's presidenti interested in knowing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending inventory autions as follows Sales continue to be 20% for cash and 80% on credit. However, credit sales from April May and June are collected over a three- month period with 25% collected in the month of sale, G5% collected in the month following sale, and 10% in the second month flowing from February and March are collected during the second quarter using the collection percentages specified in the main con b. The company maintains its ending inventory levels for April, May and June at 15% of the cost of merchandise to be sold in the following month. The merchandise inventory at March 21 remains $30,000 and accounts payable for inventory purchases at March 28 $137,200 Required: Using the president's new assumptions in above, prepare a schedule of expected cash collections for April, Max and June and for the quarter in t 2. Using the president's new assumptions in above, prepare the following for merchandise inventory a Amerchandise purchases budget for April, May and June b. A schedule of expected cash disbursements for merchandise purchases for April May and June and for the quarter in total 2. Using the president new assumptions, prepare a cash budget for April May and June, and for the quarter in total Complete this question by entering your answers in the tab Using the president new actions in (a) abs, prepare a schedule of expected cash collections for April, Mary and Ju and for the quantita A My May >> Problem 8-25 (Algo) Cash Budget with Supporting Schedules; Changing Assumptions (LO8-2, LOB-4, L08-8] Garden Sales, Inc., sells garden supplies Management planning its cash neck for the second quarter. The company usually to bonow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been able to assist in preparing a cash budget for the quar Budgeted monthly abortion costing income statements for Al-July Selling and distrati 254,000 11,200 Tatal selling and administrative expe "Includes $36,000 of depreciation each mont b. Sales are 20% for cash and 80% on accoun 70% collected in the first month c. Sales on account are collected over a three-month period with 10% collected in the month of following the month of sale; and the remaining 20% collected in the second month following the month of sale. February's totaled $300,000, and March's old $315,000 d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable at March 2 for inventory purchases during March $132200 Each month's ending investory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise Intory at March 21 $90,000. Dividend of $42,000 will be declared and paid in April Landing $1,000 will be purchased for cash in May h. The cash balance at March 21 is $65,000, the company must maintain a cash balance of at least $40,000 at the end of each month. The company has an agreement with a local bank that allows the company to bonow 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 bans is per month and for simplicity we will 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 quarter The company's president is interested in knowing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending inventory assumptions as follows Sales continue to be 20% for cash and 80% on credit. However, credit sales from April May and June are collected over a three- month period with 25% collected in the month of sale, collected in the month following, and 10% in the following from February and March are collected during the second quarter using the collection percentages specified in the main section The company maintains its ending inventory levels for April, May, and June at 15% of the cost of merchandise to be sold in the following month. The merchandise inventory at March 21 $90,000 and accounts payable for inventory purchases at March 21 $137,200 Required: 1. Using the president's new assumptions in above, prepare a schedule of expected cash collections for April, and June and for the quarter in tot 2. Using the president's new assumptions in above, 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, May and June and for the quarter in total 2 Using the president new assumptions, prepare a cash budget for April, May and June and Complete this question by entering your answers in the b using the president actions in (b) above, prepare the fallowing for marchands inventory, and purchases budget for Apr, May, and J Merchandise Pasha Budg A > Problem 8-25 (Algo) Cash Budget with Supporting Schedules; Changing Assumptions (LO8-2, LOB-4, LOB-8] Garden Sales Inc, garden supplies Management planning is a need for the second quae The company usually bow many 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 quater a Budgeted monthly abortion costing income statements for April-July an 121, 98 "Includes $36,000 of depreciation each month Sales are 20% for cash and 90% on account Sales on account are collected over a three-month period with 10% collected in the month of 70% collected in the first month following the month of sale; and the remaining 20% collected in the second month following the month of February's $300,000, and March's sales totaled $315,000 d. Inwestory purches are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The mining 50% is paid in the following month. Accounts payable at March for inventory purchases during March $137200 e. Each month's ending inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise Itory Mach Dividends of $43,000 will be declared and paid in April Land coding $51,000 will be purchased for cash in May h. The cash balance at March 21 is $65,000; the company must maintain a cash balance of at least $40,000 at the end of each month. The company has an agreement with a local bank at allows the company to bonow in increments of $1,000 at the beginning of each month, up to a loan balance of $200,000. The interest rate on these cans is per month and for simplicity assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the The company's president is interested in knowing how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. He revises the cash collection and ending inventory assumptions as follow Sales continue to be 20% for cash and 80% on credit. However, credit sales from April, May and June as collected over a three- month period with 25% collected in the month of sale,% collected in the month following sale, and 10% in the second month following a Credit sales from February and March are collected during the second quarter using the collection percentages specified in the main section b. The company maintains its ending inventory levels for April, May and June at 15% of the cost of merchandise to be sold in the following month. The merchandise inventory at March 21 $90,000 and accounts payable for inventory purchases at March 21 remains $137,200 Required: 1. Using the president's new asutions in above, prepare a schedule of expected cash collections for April, May and June and for the quarter in total 2. Using the president's new assumptions in above, 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, May and June and for the quarter in total 2. Using the president new assumptions, prepare a cash budget for April May and June, and for the quarter in total. Complete this question by entering your answers in the tab Using the presidenssumptions above, prepare the following forces inventory, a schedule of expected cash disbursements for reerchandise purchases for Apr, May, and June and for the quarter in al Apr May >