Cash$-8000$

Accounts receivable $-20000$

Inventory$-36000$

Plant and Equipment net$-120000$

Accounts Payable$-21750$

Capital Stock $-150000$

Retaimed eamings $-12250.$

a$)$ Gross profit is $25\%$ of sales

b$.)$ Actual and budgeted gales data:

March $($actual$)50000$

April$-60000$

May$-72000$

June $90000$

July $-48000$

c$)$ Sales are $60\%$ for cach and $40\%$ on credit Credit sales are collected in the month following the sale. The account recervables at March $31$ are a result of March credit sales.

d$.)$ At the end of each monh, wiventory is to be on hand equal to $80\%$ of the following monthe sales neede, stated at cost$.$

E$)$ One half of a month's imventory purchases in paid for in the following month. The accounts payable at March $31$ are a result of March purchases of imventory:

f$)$ Monthly expenses are as follows: salaries and wages, $12\%$ of sales; rent, $$2500$ per month; other expenes $($excluding depreciation$),6\%$ of sales. Assume that these expeneses are paid monthly. Depreciation is $$900$ per month $($includes depreciation on new assets$).$

g$.)$ Equipment costing $$1500$ will be purchase in for cash in A$.$tril.

h$)$ The company must maintain a minimum balance of $4000.$ An open line of credit is available at a local bank. Atil borrowing is done at the beginning of the month, and all repayments are made at the end of a month; borrowing must be in multyle of $$1000.$ The amnul interget Tete $i,512\%.$ Irterest is paid only at the time of repayment of prircinal

Fequired: Using the data abowe $1$ tepare:

Balance Sheet as of the June $30.$