URGENT ! please answer unfinished parts !!

Problem 8-25 (Algo) Cash Budget with Supporting Schedules; Changing Assumptions [LO8-2, L08-4, LO8-8] 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 absorption costing income statements for April-July are: April $ 470,000 329.000 141.000 May $ 1,000,000 700,000 300,000 June S450,000 315,000 235,000 July $ 350,000 245.000 105,000 Sales cont of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expenset Total melling and administrative expenses Net operating income *Includes $17,000 of depreciation each month. 91,000 42,500 133,500 $7,500 95,000 56,800 151.800 $ 148,200 $6,000 35,000 91,000 S44000 35,000 33.000 68,000 $ 32,000 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 $165,000, and March's sales totaled $225,000. 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 $95.900. e. Each month's ending inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise total $95,900. e. Each month's ending Inventory must equal 20% of the cost of the merchandise to be sold in the following month. The merchandise Inventory at March 31 is $65,800. f. Dividends of $25,000 will be declared and paid in April. 9. Land costing $33,000 will be purchased for cash in May. h. The cash balance at March 31 is $47,000; the company must maintain a cash balance of at least $40,000 at the end of each month. L. 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 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: a. 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, 65% collected in the month following sale, and 10% in the second month following sele. 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 31 remains $65,800 and accounts payable for inventory purchases at March 31 remains $95,900. Required: 1. Using the president's new assumptions in (a) 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 (b) 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. A 3. Using the president's new assumptions, prepare a cash budget for April, May, and June, and for the quarter in total. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3 Using the president's new assumptions in (a) above, prepare a schedule of expected cash collections for April, May, and June and for the quarter in total. Schedule of Expected Cash Collections April May June $ 94,000 $ 200,000 S 90,000 Quarter 384,000 $ Cash sales Sales an account: February March April May June Total cash collections 26,400 126,000 94,000 36,000 244,400 200,000 37,600 520,000 90,000 $ 737,600 26,400 162,000 376,000 720,000 90,000 $ 1,758 400 340,400 $ 680,400 3. Using the president's new assumptions, prepare a cash budget for April, May, and June, and for the quarter in total. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Using the president's new assumptions in (b) above, prepare the following for merchandise inventory, a merchandise purchases budget for April, May, and June. May June Merchandise Purchases Budget April Budgeted cost of goods sold 329,000 Add: Desired ending merchandise inventory 105,000 Total needs 434,000 Less: Beginning merchandise inventory 65,800 $ Required inventory purchases 368,200 700,000 315,000 47,250 36,750 747,250 351,750 105,000 47,250 $ s 642,250 304,500 3. Using the president's new assumptions, prepare a cash budget for April, May, and June, and for the quarter in total. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3 Using the president's new assumptions in (b) above, 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. Schedule of Expected Cash Disbursements for Merchandise Purchases April May June Quarter Beginning accounts payable $ 95,900 $ 95,900 April purchases 184,100 184,100 May purchases 321,125 321,125 June purchases 0 152,250 152,250 Total cash disbursements IS 280,000 $ 321,125 152,250 $ 753,375 S Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Using the president's new assumptions, prepare a cash budget for April, May, and June, and for the quarter in total. (Cash deficie repayments and interest should be indicated by a minus sign.) Garden Sales, Incorporated Cash Budget For the Quarter Ended June 30 April S 47,000 $ 318,200 365,200 May 40,700 $ 662,400 703,100 June Quarter 40,075 XS 47,000 737,800 1,718,200 777,675 1,765,200 Beginning cash balance Add collections from customers Total cash available Less cash disbursements: Purchases for inventory Seling expenses Administrative expenses Land purchases 280,000 91,000 25,500 505,225 95,000 39,800 33,000 473,375 56,000 18,000 1,258,600 242.000 83,300 33,000 Required: 1. Using the president's new assumptions in (a) 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 (b) 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. 3. Using the president's new assumptions, prepare a cash budget for April, May, and June, and for the quarter in total Answer is not complete Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3 Using the president's new assumptions in (a) above, prepare a schedule of expected cash collections for April, May, and June and for the quarter in total. Schedule of Expected Cash Collections April May June S 4000 $ 200.000$ 90.000 Quarter $ 384.000 Cash sales Sales on account February March 20.400 126.000 26.400 62.000 38000