A. The company sells each system for $190. Actual sales for November were 100 units. It is expected that sales will increase by 5% per month until May 2022.

B. 70% of the cash for sales is collected in the month of sale, 20% is collected in the following month, and the remaining 10% is collected in the month after that. For simplicity, all sales taxes will be ignored.

C. The company purchases enough units each month to cover the current months sales and maintain an ending inventory equal to 60% of the following months projected sales. Each unit costs the company $105. Inventory purchases are paid for in the month following the purchase.

D. The company is expected to incur fixed operating expenses of $1,200 per month and variable operating expenses equal to 10% of sales for the month. Operating expenses are paid for in the month incurred.

E. Monthly interest is paid on the long-term loan at a rate of 5% per annum. At the end of March, a payment of $500 will be made on the principal of the loan.

F. On August 1, 2021, the company paid $7,200 for one years insurance coverage.

G. Equipment costing $3,000 will be purchased and paid for at the beginning of January. All equipment is depreciated on a straight-line basis over 15 years with no residual value. H. The company will issue 100 additional common shares and sell them to your uncle for $10.00 per share at the end of March 2022.

I. The company pays salaries totalling $4,000 each month. For simplicity, ignore all payroll tax implications.

J. The company will declare and pay a dividend of $3,000 at the beginning of March 2022.

K. Income tax expense for this small business is calculated at 25% of the earnings before taxes. The company pays income tax instalments of $500 per month.

L. The company must maintain a minimum cash balance of $4,000. A short-term loan is available to cover any shortfall. Interest is paid monthly on the previous month's loan balance at a rate of 6% per annum. Any cash above $4,000 available at month end is used to reduce any existing short-term loan.

You are the sole shareholder and operator of a small incorporated business that purchases compact global positioning systems (GPS) and sells them to retailers. The following data have been assembled to assist in the preparation of the master budget for the first quarter (January, February and March) of 2022. As of December 31, 2021 your company had the following balance sheet: Your Company (make up a name) Balance Sheet December 31, 2021 Cash $ 4,000 Accounts payable $ 11,340 Accounts receivable 7,885 Taxes payable 900 Inventory 6,930 ST loan payable 1,200 Prepaid insurance 4,200 Total current liabilities 13,440 Total current assets 23,015 LT loan payable 5,000 Equipment 8,000 Total liabilities 18,440 Accumulated depreciation 3,000 Common shares 8,000 Net equipment 5,000 Retained earnings 1,575 Total assets $ 28,015 Total liabilities and equity $ 28,015 * 1,000 common shares outstanding A. The company sells each system for $190. Actual sales for November were 100 units. It is expected that sales will increase by 5% per month until May 2022. B. 70% of the cash for sales is collected in the month of sale, 20% is collected in the following month, and the remaining 10% is collected in the month after that. For simplicity, all sales taxes will be ignored. C. The company purchases enough units each month to cover the current month's sales and maintain an ending inventory equal to 60% of the following month's projected sales. Each unit costs the company $105. Inventory purchases are paid for in the month following the purchase. You are the sole shareholder and operator of a small incorporated business that purchases compact global positioning systems (GPS) and sells them to retailers. The following data have been assembled to assist in the preparation of the master budget for the first quarter (January, February and March) of 2022. As of December 31, 2021 your company had the following balance sheet: Your Company (make up a name) Balance Sheet December 31, 2021 Cash $ 4,000 Accounts payable $ 11,340 Accounts receivable 7,885 Taxes payable 900 Inventory 6,930 ST loan payable 1,200 Prepaid insurance 4,200 Total current liabilities 13,440 Total current assets 23,015 LT loan payable 5,000 Equipment 8,000 Total liabilities 18,440 Accumulated depreciation 3,000 Common shares 8,000 Net equipment 5,000 Retained earnings 1,575 Total assets $ 28,015 Total liabilities and equity $ 28,015 * 1,000 common shares outstanding A. The company sells each system for $190. Actual sales for November were 100 units. It is expected that sales will increase by 5% per month until May 2022. B. 70% of the cash for sales is collected in the month of sale, 20% is collected in the following month, and the remaining 10% is collected in the month after that. For simplicity, all sales taxes will be ignored. C. The company purchases enough units each month to cover the current month's sales and maintain an ending inventory equal to 60% of the following month's projected sales. Each unit costs the company $105. Inventory purchases are paid for in the month following the purchase