a. All sales are made on credit.

b. The firm's accounts receivable period is 24 days.

c. In April 2016 sales were $75,000. In May 2016, sales are expected to be $30,000.

d. Accounts payable are 50% of sales.

e. Operating expenses are 20% of sales.

f. Assume there is an annual interest rate of 18% on short term debt and that the firm starts May (ends April) with $60,000 in ST borrowing. The firm wants to pay this debt off as soon as possible.

g. The firm's beginning cash balance in May 2016 is $2,000.

h. The minimum account balance required is $2,000.

1. In May 2016, how much cash is estimated to be collected from May sales?

2. In May 2016, what are the total cash collections estimated?

3. In May 2016, how much debt is the firm estimated to repay, if any?

4. At the end of May 2016, what is the estimated ending cash balance after any short term financing or repaying of short term debt has occurred?

5. At the end of May 2016, what is the estimated ending short term debt balance after any short term financing or repaying of short term debt has occurred?