Happy & Healthy (HH) Co. sells nature-based essential oil. Data regarding the companys operations follow:

Sales are budgeted at $150,000 for February, $140,000 for March, and $165,000 for April.

Collections are expected to be 80% in the month of sale, 15% in the month following the sale, and 5% uncollectible.

The cost of goods sold is 70% of sales.

The company desires to end merchandise inventory to equal 80% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.Salary and other monthly expenses to be paid in cash are $32,000.

Monthlydepreciation is $16,000.Income taxes are paid monthly for $1,500/month

.Company has the policy to maintain a minimum cash balance of $50,000 in the end of each month.

HH Co. may enter into short-term borrowing in a multiple of $1,000 to cover for its cash deficiency. Repayment of this loan is made in the month when the company has excess cash over its requirement, also in a multiple of $1,000.

Prepare a Schedule of Expected Cash Collections for February and March.

Prepare a Merchandise Purchases Budget for February and March.

Prepare Cash Budgets for February and March.

Calculate the balance of Account Receivable and Account Payable for the end of March

Statement of Financial Position January 31, 2020 52.000 87.000 175.000 1.200.000 $ 1.314.000 Assets Cash Account receivable (net of allowance for uncollectible account) Merchandise inventory Property, plant and equipment (net of accumulated depreciation) Total assets Liabilities and Stockholders' Equity Account payable Common stock Retained earnings Total liabilities and stockholders' equity 180.000 900.000 434.000 S 1.514.000