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 saies 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 June July Sales $ 650, e00 $ 820,000 $ 530,000 $ 430, eee Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense Total selling and administrative expenses 455, eee 574, e00 371,800 301, 000 195,e00 246, 000 159,900 129.000 83,e00 102, 800 64, 000 43.000 46, 5e8 129, see 62,480 39, 200 41,000 164, 480 103,20e 84,000 Net operating income S65, see $ 81,600 S 55,800 $ 45,eee "Includes $25,000 of depreclation each month. 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 remalning 20% collected In the second month following the month of sale. February's sales totaled $245,000, and March's sales totaled $260,000. d. Inventory purchases are pald for within 15 days. Therefore, 50% of a month's Inventory purchases are pald for In the month of purchase. The remalning 50% Is pald in the following month. Accounts payable at March 31 for Inventory purchases during March total $118,300. 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 $91,000. f. DIvidends of $32,000 will be declared and pald In Aprl. g. Land costing $40,000 will be purchased for cash In May. h. The cash balance at March 31 Is $54,000; the company must malntaln a cash balance of at least $40,000 at the end of each month. I. 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 Interést at the end of the quarter. Requlred: . Prepare a schedule of expected cash collections for April, May, and June, and for the quarter in total