Following information is available with respect to a firm. Balance Sheet as on August 1 Assets Cash Accounts Receivable Inventory Net Fixed Assets (depreciation 4000) Amount 5100 14700 26000 16000 61800 59200 600 2000 61800 Capital Accrued Wages Other Liabilities Assume: 1. Sales are 40% against cash and 60% on credit 2. Of the credit sales, 75% are collected in the first month following the sales and 25% in the second month following the sales. 3. All inventory purchases are paid for during the month in which they are made 4. Firm follows a policy of purchasing enough additional inventory each month to cover 1.25 times the following month sales. Its gross margin is 20% on sales 5. A minimum cash balance of Rs.2000 is to be maintained by the firm 6. Accrued wages and other current liabilities remain unchanged. June July Aug Sep Oct Nov Dec Jan Feb Past 18000 20000 Sales (RS.) Sales 20000 26000 24000 40000 50000 18000 16000 Budget (RS.) Wages 1400 1600 1600 2000 3000 1400 and salaries (RS.) Rent: 400 per month Depreciation: 150 per month Other expenses: 1% of the sales Required: Indicate the maximum amount of necessary borrowings Following information is available with respect to a firm. Balance Sheet as on August 1 Assets Cash Accounts Receivable Inventory Net Fixed Assets (depreciation 4000) Amount 5100 14700 26000 16000 61800 59200 600 2000 61800 Capital Accrued Wages Other Liabilities Assume: 1. Sales are 40% against cash and 60% on credit 2. Of the credit sales, 75% are collected in the first month following the sales and 25% in the second month following the sales. 3. All inventory purchases are paid for during the month in which they are made 4. Firm follows a policy of purchasing enough additional inventory each month to cover 1.25 times the following month sales. Its gross margin is 20% on sales 5. A minimum cash balance of Rs.2000 is to be maintained by the firm 6. Accrued wages and other current liabilities remain unchanged. June July Aug Sep Oct Nov Dec Jan Feb Past 18000 20000 Sales (RS.) Sales 20000 26000 24000 40000 50000 18000 16000 Budget (RS.) Wages 1400 1600 1600 2000 3000 1400 and salaries (RS.) Rent: 400 per month Depreciation: 150 per month Other expenses: 1% of the sales Required: Indicate the maximum amount of necessary borrowings