ABC Plastics is ready to begin the first quarter in which peak sales occur. The company has requested a $100,000, line of credit at 12% (annual interest rate; 1% per month) loan from its bank to help meet cash requirements in the following months. In order to receive the funds the bank has requested the company prepare a cash budget. In response to this request the following data has been pulled together. a. Actual sales for the last two months, November and December and budgeted sales for January, February, and March are as follows (all sales are on account): Units Selling Price November (actual) 9,500 $20 December (actual) 7,500 $20 January (budgeted) 10,000 $19 February (budgeted) 11,000 $21 March (budgeted) 12,000 $25 Past experience shows that 50% of a months sales are collected in the month of sale, 40% in the month following the sale and 10% in the second month following the sale. The accounts receivable balance at December 31st will be collected based on the above pattern. The balance is made up of $19,000 from November and $75,000 from December. b. Budgeted purchases and budgeted expenses for the first quarter are below. January February March Merchandise purchases $85,000 $87,500 $95,000 Salaries and wages $45,000 $45,000 $60,000 Advertising $40,000 $45,000 $40,000 Rent payments $10,000 $10,000 $10,000 Equipment Purchase $0 $0 $30,000 Depreciation $20,000 $20,000 $20,000 Merchandise purchases are paid in 50% in the month of purchase and 50% during the month following purchase. Accounts payable for purchases in December will be paid in January. c. The balance sheet for December 31st, 2019 is as follows: Assets Cash $40,000 Accounts Receivable $94,000 Inventory $120,000 Plant and Equipment (net of depreciation) $180,000 Total Assets $434,000 Liabilities and Shareholders Equity Accounts Payable (all related to merchandise purchases) $50,000 Common Stock $100,000 Retained Earnings $284,000 Total Liabilities and Shareholders Equity $434,000 The company will pay a cash dividend of $5,000 in February. Assume the company requires a minimum cash balance of $50,000 at the end of each month. If possible the loan will be paid back on March 31st with interest. 1. Prepare a schedule of expected cash collections for January, February, and March. (3 Points) 2. Prepare a cash budget for the months of January, February, and March. (5 Points) 3. Please compute the ending accounts receivable and accounts payable balance as of March 31st. (2 Points)

second part of the question:

Please use the information from above to complete the following projected balance sheet amounts for Cash, Accounts Receivable, Property Plant and Equipment, Accounts Payable. Beginning Balance Ending BalanceCash $40,000Accounts Receivable $94,000 Inventory $120,000 Property Plant and Equipment $180,000 Total Assets $434,000 Accounts Payable $50,000 Short Term Debt $0 Common Stock $100,000 Retained Earnings $284,000 Total Liabilities and Owners Equity $434,000