S Garden Sales, Incorporated, 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: a. Budgeted monthly a sorption costing income statements for April-July are: Sales Cost of goods sold Gross margin Selling and administrative expenses: selling expense Administrative expense* Total selling and administrative expenses Net operating income *Includes $26,000 of depreciation each month. April May June July $ 580,000 406,000 174,000 $ 1,080,000 756,000 324,000 $ 540,000 $ 440,000 378,000 162,000 308,000 107,000 47,000 154,000 $ 20,000 103,000 63,200 166,200 $ 157,800 65,000 39,800 104,800 $ 57,200 132,000 44,000 42,000 86,000 $ 46,000 Che