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A. The company sells each system for $380. Actual sales for November 2022 were 100 units and actual sales for December 2022 were 104 .

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A. The company sells each system for $380. Actual sales for November 2022 were 100 units and actual sales for December 2022 were 104 . It is expected that sales will increase by 4% per month until May 2023. B. 75% of the cash for sales is collected in the month of sale, 20% is collected in the following month, and the remaining 5% 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 70% of the following month's projected sales. Each unit costs the company $210. Inventory purchases are paid for in the month following the purchase, D. The company is expected to incur fixed operating expenses of $2,400 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 6% per annum. At the end of March, a payment of $1,000 will be made on the principal of the loan. F. On August 1,2022 , the company paid $14,400 for one year's insurance coverage. G. Equipment costing $6,000 will be purchased and paid for at the beginning of January. All equipment (existing and new) 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 $20.00 per share at the end of March 2023. 1. The company pays salaries totalling $8,000 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 2023. K. Income tax expense for this small business is calculated at 28% of the earnings before taxes. The company pays income tax instalments of $1,000 per month: L. The company must maintain a minimum cash balance of 58,000 . 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 5% per annum. Any cash above $8,000 available at month end is used to reduce any existing short-term loan. 2. A cash receipts schedule for January, February and March. Hint: use the given percentages, with the Round function (explained below), to avoid a rounding error. Check figure: Cash receipts for January should be $40,584. 3. A purchases schedule in units for January, February and March. Check figure: January purchases should be 110 units. 4. A cash payments schedule for January. February and March. Check figure: January's total cash payments should be $44,034

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