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value 6.00 points 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 a. Budgeted monthly absorption costing income statements for April-July are $ 590,000 $ 740,000 $ 252,000 S 390,000 413,000 518,000 176,400 273,000 177,000 222,000 75,600 117,000 80,000 112,50029,500 39,000 Cost of goods sold Gross margin Selling expense 44,50081,200 27,400 37,000 24,500193,700 56,900 76,000 $ 52,500 S 28,300 $ 18,700 S 41,000 Total selling and administrative expenses b Sales are 20% for cash and 80% on account Sales on account are collected over a three-month period with 10% collected in the month of sale, 80% collected in the first month follo month following the month of sale February's sales totaled $145,000, and March's sales totaled $255,000 the month of sale, and the remaining 10% collected in the second d inventory purchases are paid for within 15 days Therefore, 50% of a months inventory purchases are paid for in the month of purchase The remaining 50% is paid in the month. Accounts payable at 31 for purchases during March total $112,700 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 $82 600 I Dividends of $29.000 will be declared and paid in April g Land costing $37,000 will be purchased for cash in May cash balance at March 31 is $51.000 the company must ma in a cash balance of atleast $40,000