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b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period in the following ratio: 10% collected in the month of sale, 70% collected in the first month following the month of sale, and the remaining 20%col. lected in the second month following the month of sale. February's sales totalled $160,000, and March's sales totalled $240,000 d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% are paid in the following month. Accounts payable at March 31 for inventory purchases during March total $100,800. At the end of each month, inventory must be on hand equal to 20% of the cost of the merchandise to be sold in the following month. The merchandise inventory at March 31 is $67,200. prepare the following for merchandise inventory: 4. An inventory purchases budget for each of the months April, May, and June. A schedule of expected cash disbursements for inventory for each of the months April, May, and junc, and for the quarter in total. prepare a cash budget for the third quarter, by month as well as in total for the quarter. Show borrowings from the company's bank and repayments to the bank, as needed, to maintain the minimum gast balance. What is the advantage of preparing the cash budget by month as opposed to on a full-quarter basis? b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period in the following ratio: 10% collected in the month of sale, 70% collected in the first month following the month of sale, and the remaining 20%col. lected in the second month following the month of sale. February's sales totalled $160,000, and March's sales totalled $240,000 d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% are paid in the following month. Accounts payable at March 31 for inventory purchases during March total $100,800. At the end of each month, inventory must be on hand equal to 20% of the cost of the merchandise to be sold in the following month. The merchandise inventory at March 31 is $67,200. prepare the following for merchandise inventory: 4. An inventory purchases budget for each of the months April, May, and June. A schedule of expected cash disbursements for inventory for each of the months April, May, and junc, and for the quarter in total. prepare a cash budget for the third quarter, by month as well as in total for the quarter. Show borrowings from the company's bank and repayments to the bank, as needed, to maintain the minimum gast balance. What is the advantage of preparing the cash budget by month as opposed to on a full-quarter basis

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