Bobcat Printingmakes customt---shirts and other promotional productsforstudent organizations and ... Bobcat Printingmakes customt---shirts and other promotional productsforstudent organizations and businesses. It is beginning its first year of operations and needs to plan for its first quarter of operations. They would like to maximize their profits, and understand that accurate budgeting can help achieve that goal. The budgets will be prepared based on the following information: a. Sales are budgeted at $30,000 for Month 1, $32,500 for Month 2, and $34,000 for Month 3. All sales will be done on account. Company does not expect to have any cash sales. b. Sales are collected 50% in the month of the sale, and 50% in the month following the sale. c. Cost of Goods Sold is budgeted at 40% of Sales. d. Monthly selling, general, and administrative expenses are as follows: donations are 10% of sales; advertising is 3% of sales; miscellaneous is 1% of sales; and rent is $5,000 per month. All SG&A expenses are paid in the month they are incurred. e. Since all of the orders are custom made, no inventory is kept on hand at the end of the month. f. Inventory purchases are paid in full in the month following the purchase. g. Bobcat Printing is planning to purchase a building in Month 3 for $8,000 in cash. h. They would like to maintain a minimum cash balance of $2,500 at the end of each month. The company has an agreement with a local bank that allows them to borrow, with a total line of credit of $20,000. The interest rate on these loans is 1% per month (12% annual). They would as far as able, repay the loan on the last day of the month when it has enough cash to pay the full balance and maintain an adequate ending cash balance. i. The owner makes a draw of $5,000 every month. (Note: sole proprietors and partnerships take owners draws, while stockholders receive dividends). Based upon the information provided, complete the operating budgets provided in the excel template, and answer the questions in TRACS. When making calculations always round up (for example: 33 7% = 2.31, round up to 3.00). Check Figures: Gross Margin $57,900 Total assets $27,973 Ending Retained Earnings $14,373

18. If Bobcat Printing has a projected cash surplus in Month 2, how much cash will it repay for borrowing on its line of credit? A. Bobcat Printing will not have a cash surplus, therefore it will need to borrow more money in Month 2. B. $1,100 C. $1,700 D. $1,400

19 . Bobcat Printing will need to borrow money in Month 3. True False

20. If Bobcat Printing is projected to have a cash shortage in Month 3, how much is the shortage? A. Bobcat Printing will not have a projected cash shortage in Month 3. B. $1,905 C. $1,250 D. $2,205

21. If Bobcat Printing has a projected cash shortage for Month 3, how much will it need to borrow? A. $13 B. $19 C. $150 D. Bobcat Printing will not have a projected cash shortage in Month 3.

22 . What is the projected gross profit for the first quarter of operations? A. $32,500 B. $27,900 C. $29,300 D. $57,900

23 . What is the projected interest expense for the first quarter of operations? A. $170 B. $14 C. $34 D. $17

24 . What is the projected net income the first quarter of operations? A. $14,446 B. $7,650 C. $13,200 D. $29,373

25. What is the projected beginning capital investment for the first quarter of operations? A. $0 B. Cannot be determined C. $3,985 D. $1,500

26 . What is the projected total owner's equity for the first quarter of operations? A. $14,373 B. $6,240 C. $2,973 D. $12,000

27. What is the projected ending cash balance for the first quarter of operations? A. $12,846 B. $2,973 C. $0 D. $3,846

28 . What is the projected accounts receivables balance for the first quarter of operations? A. $17,000 B. $8,400 C. $6,250 D. $14,200

29 . What is the projected account payable for the first quarter of operations? A. $13,600 B. $9,100 C. $8,000 D. $6,400

30 . What is the projected interest payable for the first quarter of operations? A. $0 B. $14 C. $19 D. $34

31. Points What is the projected net cash flow from operating activities for the first quarter of operations? A. $0 B. $14,446 C. $12,846 D. $25,973

32 . What is the projected net cash flow for investing activities for the first quarter of operations? A. ($3,000) B. $8,000 C. ($8,000) D. $3,000

33. What is the projected cash flow from financing activities for the first quarter of operations? A. ($15,000) B. $15,000 C. $1,700 D. ($1,700) E. ($16,700)