. . Go Go Golf Inc. (GGG) manufactures custom golf carts & is forecasting their cashflow needs for their next quarter (April - June) and are developing a cash budget to determine what months they will need to borrow. They have determined the following information: Sales are collected at a rate of 60% in cash and 35% on credit & 5% is bad debt. Credit sales are collected sales are collected in the following two months at a rate of 28% in the following month & 7% the second month. Sales by month are: February:$75,000 March: $35,000 April: $85,000 May: $265,000 June: $285,000 July: $90,000 Gross Margin is at 70% of sales. GGG maintains ending inventory equal to 70% of next months cost of goods sold. Accounts payable for inventory is $35,000 & beginning inventory is $28,000 25% of a month's inventory purchases is paid for in the month of purchase; the other 75% is paid for in the following month Selling & Administrative costs are as follows (all paid in cash) o Commissions 12% of sales o Rent $25,000 o Depreciation $5,000 o Shipping 3% of cost of goods sold o Other $35,000. Assume that the company can only borrow in $5,000 increments and at the beginning of the month, opening cash is $9,000, therefore if GGG projects that they will not have enough cash for the month they must borrow. Interest rate on borrowing is 2.5% GGG is planning to purchase a new hoist in May for $45,000 to use in their shop. Capital assets on March 31, have a net book value of $150,000 Opening Retained Earnings is $325273.50 & capital stock is $10 . - Prepare a quarterly Income Statement (5 marks) o Prepare a balance sheet as of June 30, 2020