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Help Save & Exit Submit 100 Check my w 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 May 5.810,000 950.000 567.000 545.000 243,000 285,000 June $ 650.000 455.000 July 560,000 392.000 60 000 Sales Coat of goods sold Groas margin Selling and administrative expenses Selling expense Administrative expense Total selling and administrative expenses Net operating income "Includes $37,000 of depreciation each month 76,000 27,000 95,000 52,500 147,500 $ 95,500 114,000 74,200 10000 96,000 56,000 53,000 109,000 5 59.000 5 72.000 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 $305,000, and March's sales totaled $320,000, Po 3 of 3 HE Next Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3 Prepare the following for merchandise inventory, a merchandise purchases budget for April, May, and June. Merchandise Purchases Budget April May June Total needs Required inventory purchases Complete this question by entering your answers in the tabs below. Check my w Required 1 Required 2A Requiled 28 Required 3 Required 2B 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 April purchases May purchases June purchases Total cash disbursements Required 1 Required 2A Required 28 Required 3 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, Incorporated Cash Budget For the Quarter Ended June 30 April May June Quarter Beginning cash balance Add collections from customers Total cash available Less cash disbursements: Purchases for inventory Selling expenses Administrative expenses Land purchases Dividends paid Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayment Interest Total financing Ending cash balance