19. Anticipating a significant increase in customer demand and market share over the next few years, CamDrone is planning a significant expansion involving acquiring additional manufacturing equipment for $3,000,000 cash. Half of this amount is to be paid to the equipment supplier in July 2020, with the remainder to be paid in October 2020 3. Selling and administrative expenses are known to be a mixed cost; however, there is a lot of uncertainty about the portion that is fixed. Based on prior year experience: Lowest level of monthly sales:80 units ... Total Operating Expenses: $87,270* Highest level of monthly sales:1,600 units ... Total Operating Expenses: $360,780 * excluding bad debts and amounts described below These expenses are expected to increase by 3% in 2020 due to inflation. 21. To secure and grow its market share, CamDrone is planning to operate "pop-up" kiosks in various local retail centers during peak sales months (May-Aug. Nov-Dee) commencing Nov2019. CamDrone is budgeting $10,900 per month (including all related fees and taxes), payable at the beginning of each month, to set-up and operate these kiosks. The cost to set-up and operate "pop-up" kiosks will be in addition to the normal selling and administrative expenses described above and is not expected to increase during 2020. Income tax expense is estimated to be 25% of net income. CamDrone makes monthly income tax installment payments of $25,000 and pays all outstanding income taxes (in excess of installment payments) in March of the following year. As such, any outstanding income tax balance for the year ended December 31, 2019 it will be paid in March 2020. 23. An arrangement has been made with the local bank that if CamDrone maintains a minimum balance of $50,000 in their bank account, they will be given a line of credit at a preferred rate of 3% per annum (0.25% per month). All borrowing is considered to happen on the first day of the month, repayments are on the last day of the month. All borrowings and repayments from the bank should be in multiples of $10,000 and interest must be paid at the end of each month. Interest is calculated on the balance at the beginning of the month, which includes any amounts borrowed that month. 2. CamDrone has a policy of paying dividends at the end of each quarter. The President tells you that the Board of Directors is planning on declaring dividends as follows: 550.000 S100 March 200 June 2000 September 2000 $250,000 Bomber 2020 $250.000 Dividends are paid in the month they are declared. 19. Anticipating a significant increase in customer demand and market share over the next few years, CamDrone is planning a significant expansion involving acquiring additional manufacturing equipment for $3,000,000 cash. Half of this amount is to be paid to the equipment supplier in July 2020, with the remainder to be paid in October 2020 3. Selling and administrative expenses are known to be a mixed cost; however, there is a lot of uncertainty about the portion that is fixed. Based on prior year experience: Lowest level of monthly sales:80 units ... Total Operating Expenses: $87,270* Highest level of monthly sales:1,600 units ... Total Operating Expenses: $360,780 * excluding bad debts and amounts described below These expenses are expected to increase by 3% in 2020 due to inflation. 21. To secure and grow its market share, CamDrone is planning to operate "pop-up" kiosks in various local retail centers during peak sales months (May-Aug. Nov-Dee) commencing Nov2019. CamDrone is budgeting $10,900 per month (including all related fees and taxes), payable at the beginning of each month, to set-up and operate these kiosks. The cost to set-up and operate "pop-up" kiosks will be in addition to the normal selling and administrative expenses described above and is not expected to increase during 2020. Income tax expense is estimated to be 25% of net income. CamDrone makes monthly income tax installment payments of $25,000 and pays all outstanding income taxes (in excess of installment payments) in March of the following year. As such, any outstanding income tax balance for the year ended December 31, 2019 it will be paid in March 2020. 23. An arrangement has been made with the local bank that if CamDrone maintains a minimum balance of $50,000 in their bank account, they will be given a line of credit at a preferred rate of 3% per annum (0.25% per month). All borrowing is considered to happen on the first day of the month, repayments are on the last day of the month. All borrowings and repayments from the bank should be in multiples of $10,000 and interest must be paid at the end of each month. Interest is calculated on the balance at the beginning of the month, which includes any amounts borrowed that month. 2. CamDrone has a policy of paying dividends at the end of each quarter. The President tells you that the Board of Directors is planning on declaring dividends as follows: 550.000 S100 March 200 June 2000 September 2000 $250,000 Bomber 2020 $250.000 Dividends are paid in the month they are declared