Help 1 $44,000 25,600 18,400 August $74,000 43,600 32,400 September $54,000 31,600 22,400 October $49,000 28,600 20,400 Sales Cost of goods sold Gross margin Selling and administrative expenses : Selling expense Administrative expense Total selling and administrative expenses Net operating income 8,400 5,850 14,250 $ 4,150 12,500 7,600 20,100 $10,300 8.900 6,500 15,400 $7,000 7.700 6,300 14,000 $ 6,400 eBook Print #includes $2,200 depreciation each month b. Sales are 20% for cash and 80% on credit c Credit sales are collected over a three-month period, with 10% collected in the month of sale, 70% in the month following 20% in the second month following sale. May sales totalled $34,000, and June sales totalled $40,000 d. Inventory purchases are paid for within 15 days Therefore, 50% of a month's inventory purchases are paid for in the mont purchase the remaining 50% are paid in the following month Accounts payable for inventory purchases at June 30 total e The company maintains its ending inventory levels at 75% of the cost of the merchandise to be sold in the following mon merchandise inventory at June 30 is $20,000 f Land costing $4,700 will be purchased in July g Dividends of $1,200 will be declared and paid in September h. The cash balance on June 30 is $8,400; the company must maintain a cash balance of at least this amount at the end of month 1. The company has an agreement with a local bank that allows it to borrow in increments of $1.000 at the beginning of eac up to a total loan balance of $40,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume Prey 1 of 1 Next ere to search 0