2. Consider the balance sheet of Rodriguez Malting Company at December 31 (in thousands). The company has received a large order and anticipates the need to go to its bank to increase its borrowings. As a result, it has to forecast its cash requirements for January, February, and March. Typically, the company collects 20 percent of its sales in the month of sale, 70 percent in the subsequent month, and 10 percent in the second month after the sale. All sales are credit sales.

Cash $ 50 Accounts payable $ 360 Accounts receivable 530 Bankloan 400 Inventories -545 Accruals -212 Current assets $1,125 Current liabilities $ 972 Net fixed assets 1,836 Long-term debt 450 Common stock 100

- Retained earnings -1,439 Total assets $-2,961 Total Liabilities and equity -$2,961 412 Part IV Tools of Financial Analysis and Control