You are appointed as an accountant by Al Busten Sales, Inc. that sells garden supplies. Management is planning its ch needs for the wond quarter The company wally not browney during this quarter to support peak sales of lawn care equipment, which occur during May. The head of department asked you to prepare a cobert for the quanto this end, you are worked with secounting and ever areas to gather the information assembled below Budgeted monthly absorption costing income statements for April-July in April May Fune July Sales 5540,000 $10.000 $450.000 $360,000 Cast of goods told $376,000 $567.000 $315.000 5252.000 Groua marin $162.000 524000 5135.000 SIDS.000 5129.950 Total selling and administrative 380,500 565.785 577,760 Eupenes Net operating income 581,500 STIOSO 569.215 530.240 You have gathered the following additional information: All sales are on credit. Only 10% of a monthly sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 2014 a collected in the month following sale. February's sales totaled $10,000, and Maresales totaled 270,000 2 50% of a mouth's inventory purchases we paid for in the month of purchase. The remaining suis peld in the following month. Accounts payable at March 31 for levettory partes tuning 3.Each month's ending inventory must equal 27 of the cost of the merchandise to be sold in the following month. The merchandise inventory March 4.400 4. Dividends of $40.000 will be declared and paid in April 5. Land costing 516,000 will be purchased for each in May 6. Selling and ministrative expense includes $20,000 of depreciation each month 7. The cul halinde March 1 i 552,000, the company maintain a cash balance of at b590,000 the end of the mouth, All Sewing a do te na ay repayments are made at the end of the quarter a. The company has an agreement with local bank that allows the company to borrow your helping of each month, tinerei permet Required Prepare a schedule of expected a collections for April, May, and one, and for the quarter in wal para 2. Prepare a merchandise purchases budget for April, May, and we markal 3. Prepare a schedule of expected cashdistunements for merchandise purchases for April, May, and Junt, and for the quarter in toul Daniel 4. Prepures can budget for April, May, and Jane as well as in total for the quarter. (6 m) For the toolbat press ALT:F10/PCO ALTF10 (Mac) 1 V 5 C F ALT. XOOQ 1408 Paragraph Arial