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il nvefory each l month to equal the following month's projected ions average 24% of sales; gross profit on sales is 37% Salanes, wages, and commissions average an o us All purchases are paid for in the month following purchase. ble expenses hr variable ixed expenses for rent, property taxes, and miscellaneous r items are $9,000 monthly. Assume that these variable and fixed expenses require ts each month. Depreciation is $1,000 monthly a June. $5.000 is going to be disbursed for fixtures acquired and recorded in furniture and The May 31 balance of accounts payable includes this amount. in May. that a minimum cash balance of $4,000 is to be maintained. Also assume that all borrowing at the beginning of the month and all repayments are made at the end of the month of Interest is compounded and added to the outstanding balance each month, but interest the ends of months when principal is repaid. The interest rate is 9% per year; rou nd tations and interest payments to the nearest dollar. Interest payments may be any dollar omp borrowing and repayments of principal are made in multiples of S$1,00 lgeted income statement for the coming June-August quarter, a cash budget for each nths, and a budgeted balance sheet for August 31. 20X8. All operations are evaluated income-tax basis, so income taxes may be ignored here why there is a need for a bank loan and what ope rating sources supply cash for repaying the bank loan. B1 Prepare Master Budget Fish Kite Co mpany, a small Woy Woy, Australia, firm that sells kites on the Web, wantsa for the 3 months beginning January 1, 20X2. It desires an ending minimum cash bal each month. Sales are forecasted at an average wholesale selling price of $14 per kite. sts average $5 per kite. All sales are on credit, payable within 30 days, but experience that 40% of current sales are collected in the current month, 10% in the next month, and the month thereafter. Bad debts are negligible. uary, Flying Fish Kite is beginning just-in-time (JIT) deliveries from suppliers, which hases will equal expected sales. On January 1, purchases will cease until inventory to $22,000, after which time purchases will equal sales. Purchases during any given month paid in full during the following month. operating expenses are as follows Wages and salaries Insurance expired $80,000 450 900 1,000 Miscellaneous 500/month +5% of quarterly sales over $50,000 Rent dividends of $2,400 are to be paid quarterly, beginning January 15, and are declared on nth of the previous month. All operating expenses are paid as incurred, except insurance, and rent. Rent of $500 is paid at the beginning of each month, and the additional 5% settled quarterly on the tenth of the month following the end of the quarter. The next rent date is January 10. com ny plans to buy some new fixtures for $4,000 cash in March. borrowed and repaid in multiples of $2,000. Management wants to minimize repay rapidly. Simple interest of 9% per annum is computed monthly but paid when is repaid. Assume that borrowing occurs at the beginning, and repayments at the end, of and question. Compute interest to the nearest dollar UNTING FOR PLANNING AND CONTROL Liabilities and Owners' Equities as of December 31, 20X1 Assets as of December 31, 20X1 $151,500 S 30,000Accounts payable 180,600 153,000Dividends payable Cash Accounts receivable Inventory* Unexpired insurance Fixed assets, net (merchandise 2,400 27,950 249.150 $431,000 5.400 Rent payable 62,000 Owners' equity $431.000 November 30 inventory balance $59,000 Recent and forecasted sales: October $280.000 December$161,000 February $413,000 November 168,000 January 378,000 March April $28 0 273,000 1. Prepare a master budget including a budgeted income statement, balance sheet, cas supporting schedules for the months January-March 20X2. h budg 2. Explain why there is a need for a bank loan and what operating sources provide t repayment of the bank loan. cash for th