1. j55 P.17.10 The following information is available in respect of a firm: Balance Sheet as on August 1 thousand) Liabilities Amount Assets Amount Accrued wages 2600 Cash 25,100 Capital 59,200 Accounts receivable 14.700 Other liabilities 2.000 Inventory 26,000 Fixed assets 320,000 Less depreciation 4,000 16,000 61,800 61,800 2. Assume: (a) Sales are 40 per cent against cash, 60 per cent on credit. (b) of the credit sales, 75 per cent are collected in the first month following sales and 25 per cent in the second month following sales. All inventory purchases are paid for during the month in which they are made. (d) A basic inventory of t1 crore (cost) is constantly maintained and the firm follows a policy of pur- chasing enough additional inventory each month to cover 1.25 times the following month's sales. Its gross profit margin is 20 per cent on sales. (e) A minimum cash balance of 20 lakh is to be maintained by the firm. (1) "Accrued wages" and other current liabilities" remain unchanged. 3. Past Sales: thousand) June 218,000 July 20,000 4. Sales Budget: thousand) August 220,000 November 340,000 September 26,000 December 50,000 October 24.000 January 18,000 February 5. Montbly Expenses (a) Wages and Salaries: thousand) August 21,400 November 22,000 September 1,600 December 3,000 October 1,600 January 1,400 (b) Rent: 4 lakh per month (CDepreciation: 21.5 lakh per month (d) Other expenses: 1 per cent of sales Required: Indicate the maximum amount of necessary borrowings. 16,000