Le Jardin Papillons Company, an event planning company. At all of its events, Le Jardin incorporates a release of Iive butterflies, which they bred and hatch in their own facilities. The company prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the first quarter. a. Actual and budgeted sales are as follows: c. All sales are on credit. Payments on credit sales are 40% collected in the month of the sale and 60% in the month following the sale. The accounts receivable of $45,000 at December 31 are a result of December credit sales. d. The company's gross margin percentage is 25% of sales. (In other words, cost of goods sold is 75% of sales.) Of the 75% of cost of goods sold, it is broken into 40% for merchandise/inventory and 35% for contract labor, 75% e. Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold. December 31 inventory is $12,000. f. Three-quarters of a month's combined purchase of merchandise/inventory and contract labor is paid for in the month of purchase; the other quarter is paid for in the following month. The accounts payable at December 31 of $35,000 are the result of December purchases. g. Monthly expenses are as follows: commissions, 10% of current month sales; rent, $3,000; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $4,000 for the quarter and includes depreciation on new assets acquired during the quarter. g. Equipment will be acquired for cash: $2,000 in January and $3,000 in February. December 31 cash balance is $30,000. h. Management would like to maintain a minimum cash balance of $5,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $50,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. For interest calculation purposes, assume that borrowings and repayments are made on the last day of the month. When able, the company will pay down the note monthly, but first ensuring the minimum $5,000 balance. Any interest would be paid on the last day of the quarter. i. The company declared and paid cash dividends of $10,000 during March. Le Jardin Papillons Company, an event planning company. At all of its events, Le Jardin incorporates a release of Iive butterflies, which they bred and hatch in their own facilities. The company prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the first quarter. a. Actual and budgeted sales are as follows: c. All sales are on credit. Payments on credit sales are 40% collected in the month of the sale and 60% in the month following the sale. The accounts receivable of $45,000 at December 31 are a result of December credit sales. d. The company's gross margin percentage is 25% of sales. (In other words, cost of goods sold is 75% of sales.) Of the 75% of cost of goods sold, it is broken into 40% for merchandise/inventory and 35% for contract labor, 75% e. Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold. December 31 inventory is $12,000. f. Three-quarters of a month's combined purchase of merchandise/inventory and contract labor is paid for in the month of purchase; the other quarter is paid for in the following month. The accounts payable at December 31 of $35,000 are the result of December purchases. g. Monthly expenses are as follows: commissions, 10% of current month sales; rent, $3,000; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $4,000 for the quarter and includes depreciation on new assets acquired during the quarter. g. Equipment will be acquired for cash: $2,000 in January and $3,000 in February. December 31 cash balance is $30,000. h. Management would like to maintain a minimum cash balance of $5,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $50,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. For interest calculation purposes, assume that borrowings and repayments are made on the last day of the month. When able, the company will pay down the note monthly, but first ensuring the minimum $5,000 balance. Any interest would be paid on the last day of the quarter. i. The company declared and paid cash dividends of $10,000 during March