DYLAN -R Accounting 2120 Fall 2018 Master Budget Project C 15 points In-class Assessment-Thursday, November 15, 2018 The following information is available for Super Shirts, Ine., I. Balance sheet information as of January 31, 2019 T-shirt retail store Cash Accounts Receivable Inventory Equipment (net) S 71,000 28,000 70,000 31,000 Liabilities: Accounts Payable Interest Payable Notes Payable 16,000 75 15,000 Stockholders' Equity Common stock Retained earnings 100,000 68,925 2. Recent and anticipated sales: January February March April S50,000 $80,000 $90,000 $70,000 3, Credit sales: Sales are 80% for credit and 20% cash. Assume that the credit accounts are collected 28% within the month of sale, 70% within the month following the sale, and 2% is uncollectible and written off immediately as a bad debt. 4. Cost of goods sold is 40% of sales, we pay for 20% of the purchases in the month of purchase and the remaining 80% of the purchases in the month following the purchase. 5. Inventory is equal to $70,000 at all times. 6. Operating costs: Salaries and wages average 10% of monthly revenues, other monthly operating costs are $15,000. Assume that these costs are paid out each month. Depreciation is $500 per month. 7. The note payable is due on June 30, 2020, Accrue monthly interest at 6% per annum. 8. Assume that a minimum cash balance of $50,000 must be maintained. Assume also that all borrowing is effective at the beginning of the month and all repayments are made