$\backslash$table$[[$Spartan Censulting $,$ now sells computers, It staried in Fiebruary. Managament is planning iks cash needs for the second quarter. The company will need to borrow money during this quarter to support peak sales of its new computer line, which is forecasted to occur duing May. The following information has been assembled to assist in preparing a cash budget for the quarfer:,$],[$a$.$ Butgeted monthly absorption costing income statements for April$-$July ane:$],[,$Aprl,,Msy$,,$June,,Juls$],[$Sales$,5,5,780000,5,450\mathrm{.}000,5,380,000],[$Cost af goods sold,$408\mathrm{.}000,,545\mathrm{.}000,,250\mathrm{.}060,,248\mathrm{.}600],[$Gross margin,$174000,,234000,,12000,,114\mathrm{.}000],[$Selfing and administrative expenses:,,,,,,,$],[$Sulling uxperse,$78000,,98000,,59\mathrm{.}000,,38\mathrm{.}000],[$Adninistrative expensa$*,44000,,59200,,8060,,$X $500],[$Total selling and adminituative experses,$122000,,151250,,85000,,14\mathrm{.}600],[$Net operating income,$5,5,78\mathrm{.}800,5,24200,5,40\mathrm{.}000]]$

"Incluses $$21,000$ of depreciation each month.

c$.$ Sales on acoourt are collected over a three$-$month period with $10\%$ collected in the month of sale; $70\%$ collected in the frot morth following the month of sale; and the remaining $20\%$ collected in the second month following the morith of sale. February's sales tataled $$195,000,$ and Marchis sales tolaled $$240,000.$

d$.$ Inventory purchases are paid for willin $15$ days. Therefore, $50\%$ of a month's invertory purchases are paid for in the month of purchase. The remaining $50\%$ is paid in the following month. Accounts payable at March $31$ for inverlory purchases during Harch total $$107800.$

e$.$ Each month's ending inventory must equal $20\%$ of the cost of the merchandise to be sold in the lollowing month. The merchandise invertory at March $31$ is $$81,200.$ Selling and adminintrative experses will be paid within each month.

f$.$ Dividends of $$28,000$ will be declared and paid in Agni.

g$.$ Land costing $$36,000$ will be purchased for cash in May.

h$.$ The cash balance at March $31$ is $$50,000$; the company must maintain a cash balance of at least $$40,000$ at the end of each month.

The compary has an agreement with a local bark that allows the corroany to borrow in increments of $$1,000$ at the beginning of each month, up to a total lean balance of $$200\mathrm{.}000.$ The interest rate on these loans is $1\%$ per monith and for simplicily 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 quanter.

Prepare a cash budget for Apri, May, and June as well as in total for the quarter. Please use the budget sheet to completie.$\backslash$table$.$