Budgeting:

There are similar questions around. For this one I have no problem with Quesitons 1,2,3,5. Question 4 is solvable, thought bit confusing. The real challenge is Balance Sheet - not sure how to work on it. None of the similar questions on Chegg provide much of a clue. Could anyone help me with this part? where am I supposed to find the relevant entries ? (Such as account receivable and account payable, etc.?) Much Thanks!!

PROBLEM 9-20 Completing a Master Budget LO21 The following data relate to the operations of Soper Company, a wholesale distributor of consumer goods, as of March 31 8000 20,000 120000 21750 150,000 Common shares.... Retained earnings a. The gross margin is 25% ot sales b. Actual and budgeted sales data are as follows March (actual)... $50,000 60,000 72000 90,000 July C. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following d Each month's ending inventory should equal 80% of the following month's budgeted cost of e. One-half of a month's inventory purchases is paid for in the month of purchase; the other half sale. The accounts receivable at March 31 are a result of March credit sales goods sold is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory Monthly expenses are as follows: commissions, 12% of sales; rent, $2,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (includes depreciation on new assets) g. Equipment costing $1,500 will be purchased for cash in April h. The company must maintain a minimum cash balance of $4,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month. The monthly interest rate is 1%. Interest must be paid at the end of each month based on the total loans outstanding for that month Required Using the data above, complete the following 1. Schedule of expected cash collections April May June Quarter $36000 20000 56000 Credit sales 40% of prior month's sales