QUESTION HAS 4 PARTS, PLEASE ANSWER ALL. WILL POST FEEDBACK :)

Module 5 Homework A Saved Help Save & Exit Submit Check my work 3 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: 2.5 points a. Budgeted monthly absorption costing income statements for April-July are: eBook April May June July $ 710,000 $ 880,000 $ 590,000 $ 490,000 497,000 616,000 413,000 343,000 213,000 264,000 177,000 147,000 Hint Print Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense* Total selling and administrative expenses Net operating income References 89,000 108,000 70,000 49,500 67,200 43,400 138,500 175,200 113,400 74,500 $ 88,800 $ 63,600 $ 49,000 47,000 96,000 51,000 *Includes $31,000 of depreciation each month. b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with 10% collected in the month of sale; 70% 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 sales totaled $275,000, and March's sales totaled $290,000. 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 31 for inventory purchases during March month's ending inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise inventory at March 31 is $99,400. f. Dividends of $38,000 will be declared and paid in April. g. Land costing $46,000 will be purchased for cash in May. h Thacach balance at March 21 ir tannon-thacamnanu must maintain a coch balance of at least cannon at the end of each month total $130,900. e Each Module 5 Homework A Saved Help Save & Exit Submit Check my work 3 *Includes $31,000 of depreciation each month. 2.5 points eBook Hint b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with 10% collected in the month of sale; 70% 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 sales totaled $275,000, and March's sales totaled $290,000. 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 31 for inventory purchases during March total $130.900. e. Each month's ending inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise at March 31 is $99,400. of $38,000 will be declared and paid in April. Land costing $46,000 will be purchased for cash in May. h. The The cash balance at March 31 is $60,000; 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 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 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. Print inventory at f. Dividends of References g. i. Required: 1. 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: 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. 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. Check my work 3 Complete this question by entering your answers in the tabs below. 2.5 points Required 1 Required 2A Required 2B Required 3 Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total. eBook Hint Schedule of Expected Cash Collections April May June Quarter Print S 0 References Cash sales Sales on account: February March 0 0 0 0 April May June Total cash collections 0 S os 0 $ 0 S 0 Check my work 3 b. A schedule of expected cash disbursements for merchandise purchases for April, 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. 2.5 points Required 1 Required 2A Required 2B Required 3 eBook Hint Prepare the following for merchandise inventory, a merchandise purchases budget for April, May, and June. Print Merchandise Purchases Budget April References May June Total needs 0 0 0 Required inventory purchases S 0 $ 0 $ 0 Module 5 Homework Saved Help Save & Exit Submit Check my work 1 1- -1 11 1 n 1n y 11 11 1 IT LULUI. m. 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. 2.5 points Required 1 Required 2A Required 2B Required 3 eBook Prepare the following for merchandise inventory, a schedule of expected cash disbursements for merchandise purchases for April, May, and June, and for the quarter in total. Hint Print Schedule of Expected Cash Disbursements for Merchandise Purchases April May June References Quarter S April purchases 0 0 May purchases June purchases Total cash disbursements 0 0 S 0 S os 0 Module 5 Homework i Saved Help Save & Exit Submit Check my work 3 Required 1 Required 2A Required 2B Required 3 2.5 points Prepare a cash budget for April, May, and June as well as in total for the quarter. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Garden Sales, Inc. Cash Budget For the Quarter Ended June 30 April eBook May June Quarter LO Beginning cash balance Hint Add collections from customers 0 0 Print Total cash available Less cash disbursements: Purchases for inventory Selling expenses Administrative expenses Land purchases Dividends paid Total cash disbursements References 0 0 0 0 Excess (deficiency) of cash available over disbursements 0 0 0 0 Financing Borrowings Repayment Interest Total financing 0 0 0 01 0 s Ending cash balance S 0 s 0 S 0