human resources

10 points eElook 5!! Print '0 References Janus Products. Inc. is a merchandising company that sells binders. paper. and other school supplies. The company is planning its cash needs for the third quarter. In the past. Janus Products has had to borrow money during the third quarter to support peak sales of bac ktoschool materials, which occur during August. The following information has been assembled to assist In preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for July to October are as follows: July August: September Dutch: Salas $55,000 $05,000 $65,000 $60,000 Cost of goods aold 30'000 48:000 36'000 33:000 Gross margin 25,000 31,000 29,000 21,000 Selling and administrative expenses: Selling expense 11,?00 14,?00 10,000 8,300 administrative B:panae* 6:400 8:700 7:600 1:400 Total selling and administrative expenses 18,100 23,400 1?,600 16,200 Net operating income 5 5.300 513:500 $11r4 5101-300 ' 'lncludes $2350 depreciation each month. b. Sales are 20% for cash and 80% on credit. c. Credit sales are collected over a three-month period. with 10% collected in the month of sale. 70% in the month following sale. and 20% in the Second month following sale. May sales totalled $45,000, and June sales totalled $51,000. cl. Inventory purchases are paid for within 15 clays. Therefore. 50% of a month's inti'entoryI purchases are paid for in the month of purchase. The remaining 50% are paid in the following month. Accounts payable for inventory purchases at June 30 total $19,200. e. The companyr maintains its ending inventory levels at 75% otthe cost of the merchandise to be sold in the following month. The merchandise inventory at June 30 Is $25,500. f. Land costing $5,250 will be purchased in July. 9. Dividends of $1,?50 will be declared and paid in September. h. The cash balance on June 30 is $9.500: the company must maintain a cash balance of at least this amount at the end ofeach month. i. The companyr has an agreement with a local bank that allows it to borrow In increments of $1.000 at the beginning of each month, up to a total loan balance of $40,000. 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 interest at the end of the quarter. Required: 1. Prepare a schedule of expected cash collections for July. August. and September and for the quarter in total