Cash balance $=$ $$8,241$

Marketable investments $=$ $$64,000($cost and fair value$)$

Accounts receivables, net of allowance $=$ $$81,500$

Finished goods inventory $=$ $$41,000$

Property, Plant & Equipment, net of accumulated depreciation $=$ $$352,645$

Accounts payable $=$ $$38,155$

Note payable $($due Jan $2023)=$ $$49,000$

Stockholders$$ equity, consisting of common stock $=$ $$200,000$ and retained earnings $=$ $$260,231$

The accounts receivable at the end of $2023$ will be collected in January $2024.$ Likewise, the accounts payable due at the end of December $2023$ will be paid in January $2024.$

Sales for the next four months are expected to be as shown below:

January $2024=$ $$205,000$

February $2024=$ $$255,000$

March $2024=$ $$300,000$

April $2024=$ $$240,000$

Going forward, it is expected that $50\%$ of all monthly sales will be received immediately in cash; $30\%$ of each month$$s sales will be collected in the following month; $15\%$ will be collected in the second month following the month of sale; and the remaining $5\%$ will be considered uncollectible.

Cost of goods sold is $70\%$ of sales. At the end of each month, the company would like to have an amount equal to $45\%$ of the following month$$s cost of goods sold as its ending inventory.

Also, going forward, only $30\%$ of each month$$s merchandise purchases have to be paid in cash in the same month. The remaining amount of the month's purchases is payable in the following month.

The company accrues sales commission at the rate of $12\%$ of the total sales for the month, which is paid at the end of each month.

Rent of $$4,000$ is payable on the $1$st of each month, and salaries of $$10,000$ are payable by the end of each month.

All other cash$-$based expenses amount to $8\%$ of the monthly sales and are paid by the end of each month.

Depreciation is $$1,000$ per month.

A dividend of $$8,000$ will be declared on January $15,2024$ and will be paid after $30$ days.

In $2023,$ the company sold one of its office buildings for $$73,000$ and the amount will be received in March $2024.$ This building was reported in the $2023$ balance sheet at $$48,000.$

Also in March $2024,$ the company will purchase new equipment of $$15,000$ and pay immediately in cash.

In addition, the company will buy a piece of land for $$60,000$ in January $2024$ and sign a $120-$day note payable for it$.$

Management likes to maintain a minimum cash balance of $$5,000$ at the end of each month. If the monthly cash balance is expected to fall short of this amount, the company will first sell its marketable investments $($at the beginning of that month$)$ in multiples of $$1,000,$ and then draw on a line of credit, if needed. You can assume that the sale of investment will happen at the fair value per share as of January $1,2024.$

If and when it is necessary to use the line of credit, the necessary amount will be borrowed in multiples of $$1,000$ at the beginning of the month in which such a shortfall is expected and will be repaid by the end of the quarter provided there is sufficient cash on hand at that time.

Interest is charged by the bank @ $12\%$ per year and is charged monthly depending on the amount of line of credit used for the month. $[$Do not use compounding of interest from month to month$]$

All interest is paid when the amount of loan is repaid, typically by the end of the quarter as mentioned before.

Based on the above information, prepare for January $2024,$ February $2024$ and March $2024,$ and for the $1$st quarter of $2024$

$1.$ Schedule of expected cash collections

$2.$ Merchandise purchase budget

$3.$ Schedule of expected cash disbursements for merchandise purchases

$4.$ Schedule of expected cash disbursements for selling & admin. expenses

$5.$ Cash budget

$6.$ Budgeted Income Statement $($only for the whole quarter, not monthly$)$

$7.$ Budgeted Balance Sheet $($only at the end of March $2024)$