You are appointed as an accountant by Al Bustiteen Sales, Inc. that sells garden supplies Management is planning its cash needs for the second quarter. The company usually must borrow money during this quarter to support peak sales of lawn care equipment, which occur during May The head of department asked you to prepare a cash budget for the quarter to this end, you have worked with accounting and other areas to gather the information assembled below Budgeted monthly absorption costing income statements for April-July is Sales Cost of goods sold Grossmann April $550.000 $315,000 $235.000 May $700.000 S472.500 $227.500 June $400,000 $262.500 $137.500 July $380,000 $210,000 $170,000 593 350 $120,000 $60,840 $78,000 Total selling and administrative expenses Net operating income $141.650 $107 500 $76,660 592,000 You have yathered the following additional information 1. All sales are on credit. Only 10% of a month's sales are collected in the month of sale. An additional 70% in collected in the following month, and the remaining 20% is collected in the second month following sale. February's sales totaled $160,000, and March's sales totaled 5240,000 2.50% of a month's inventory purchases we 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 $120,000 1. Each month's ending inventory must equal 20% of the cost of the merchandise to be sold in the following month The merchandise mventory at March 31 is 42,200 4. Dividends of $20,000 will be declared and paid in April 5. Land costing $89.100 will be purchased for cash in May 6. Selling and administrative expense includes $15,000 of depreciation each month 1. The cash balance at March 31 is $50,000, the company must maintain a cash balance of at least $10,000 at the end of each month. All borrowing is done at the beginning of a mouth any repayments are made at the end of the quarter 1. The company has an agreement with a local bank that allows the company to borrow any amount at the beginning of each month, at interest rate 19 per month Remaining Time: 55 minutes. 52 seconds Question Completion Status beginning of a month any repayments are made at the end of the quarter &. The company has an agreement with a local bank that allows the company to borrow any amount at the beginning of each month, ut interest rate 15 per month Required: 1 Prepare a schedule of expected cash collections for April May, and June, and for the quarter in total marke 2. Prepare a merchandise purchases budget for April May, and June (mk) 3. Prepare a schedule of expected cash disbursements for merchandise purchases for April May, and June, and for the quarter in total. muski] 4 Prepare a cash budget for April May, and Jone as well as in total for the quartet (6 marka) For the toolbar.press ALT F10 POOL ALT-FN-F10 Mac BIVS Paragraph Anal 14px I X WORDS POWED Quo1