a. Budgeted sales and merchandise purchases for the year 2020, as well as actual sales and purchases for the last quarter of 2019, are as follows: Merchandise Sales Purchases 2019: Fourth quarter actual $ 460,000 $289,800 2020: First quarter estimated 690,000 427,800 Second quarter estimated 920,000 570,400 Third quarter estimated 1,150,000 701,500 Fourth quarter estimated 460,000 289,800 b. The company normally collects 65% of a quarter's sales before the quarter ends and another 33% in the following quarter. The remainder are uncollectible. This pattern of collections is now being experienced in the 2019 fourth-quarter actual data C 80% of a quarter's merchandise purchases are paid for within the quarter The remainder are paid in the following quarter d. Operating expenses for the year 2020 are budgeted quarterly at $115,000 plus 15% of sales. Of the fixed amount. $46,000 each quarter is depreciation e. The company will pay $23,000 in dividends each quarter. 1. Equipment purchases of $173.420 will be made in the second quarter and purchases of $110,400 will be made in the third quarter These purchases will be for cash 9. The cash account contained $23,000 at the end of 2019. The treasurer feels that this represents a minimum balance that must be maintained h. Any borrowing will take place at the beginning of a quarter, and any repayments will be made at the end of a quarter at an annual interest rate of 10% Interest is paid only when the principal is repaid. All borrowings and all repayments of the principal must be in round $1,000 amounts Interest payments can be in any amount (Compute interest on whole months, eg:1/12, 2/12) 1. At present the company has no loans outstanding