Following is selected information relating to the operations of Shilow Company, a wholesale distributor:

Current assets as of March 31:
Cash	$	34,000
Accounts receivable		46,000
Inventory		82,800
Plant and equipment, net		209,000
Accounts payable		66,800
Capital shares		280,000
Retained earnings		25,000

a.	Gross margin is 25% of sales.
b.	Actual and budgeted sales data are as follows:

March (actual)	$	115,000
April		138,000
May		150,000
June		168,000
July		113,000

c.	Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales.
d.	At the end of each month, inventory is to be on hand equal to 80% of the following months sales needs, stated at cost.
e.	One-half of a months inventory purchases are paid for in the month of purchase; the other half are paid for in the following month. The accounts payable at March 31 are a result of March purchases of inventory.
f.	Monthly expenses are as follows: salaries and wages, 12% of sales; rent, $7,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $2,200 per month (includes depreciation on new assets).
g.	Equipment costing $2,800 will be purchased for cash in April.
h.	The company must maintain a minimum cash balance of $9,000. 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; borrowing must be in multiples of $1,000. The annual interest rate is 12%. Interest is paid only at the time of repayment of principal; figure interest on whole months (1/12, 2/12, and so forth).