Foxglove Company, a growing retailer, is preparing its budget for the first half of the year assuming the following Sales in each month:

	January	February	March	April	May	June
Sales	$200,000	$220,000	$242,000	$266,200	$292,800	$332,000

For budget purposes, the following assumptions are used:

a. The company's Gross Margin is 20%

b. All merchandise is purchased in the month prior to the month of Sale.

c. 75% of merchandise purchases are made on credit with the rest paid in Cash

d. For credit purchases, 30% is paid in the month of purchase, 50% in the month following and the remaining 20% in the second month after purchase

e. Half of Sales are made on Credit with the other 50% in Cash each month

g. Selling and administrative expenses of $15,000 per month include $2,500 of depreciation expense

h. The company incurs interest expense of $1,000 per month which it pays in Cash in March and June

i. Foxglove will be declaring a dividend of $10,000 in February and paying to shareholders in March

k. The budgeted balance in Retained Earnings on January 31 is $250,000

Q.1 Foxglove's budgeted cash disbursements related to merchandise purchases for the month of March would be:

Q.2 Foxglove's budgeted Retained Earnings balance at the end of February would be:

I need solutions as well

Thank you