1. Lily Company expects its Sales in January to be $120,000 and expects Sales to grow by 10% each month. 75% of sales are credit sales and the remaining 25% are cash sales.
2. The company collects 60% of credit sales in the month of the sale, the remaining 40% in the month after the sale.
3. The cost of goods sold is equal to 70% of sales.
4. Lily Company likes to keep an ending inventory equal to 20% of next months cost of goods sold.
5. All purchases of inventory are on account, and the company pays for 80% of all purchases in the month of the purchase, 20% in the month after the purchase.
6. The company pays its sales force a commission equal to 6% of sales.
7. The company also believes that its supplies expense is equal to $5,000 plus 1% of sales.
8. Rent is $4,000 per month, Advertising is $3,000 per month, Depreciation is $3,000 per month, and Utilities are $2,500 per month.
9. The company purchased an insurance policy covering 12 months for $24,000 on January 1.
10. All selling and administrative expenses are paid in the month they are incurred except for commissions that are paid in the month after they are earned and the insurance which is paid one year in advance.
11. On January 31, Lily Company purchased Land costing $38,000. Lily paid cash for the land.
12. Interest on long-term debt is equal to 1% of the beginning balance and is paid each month. The company must maintain a minimum balance in cash of $10,000 and will use any cash surplus to pay down long-term debt. The company borrows cash in $1,000 increments.
13. The company is subject to a 25% income tax rate. The company pays income taxes in the month after they are accrued (expensed).
14. In January, the company will declare a $2,500 dividend,that it will pay in February.
15. The company had a beginning balance sheet (as of January 1) as follows:

ASSETS:			LIAB & STOCKHOLDERS EQUITY
Current Assets			Current Liabilities
Cash	$10,000		Accounts Payable	$15,680
Accounts Receivable	$44,000		Commissions Payable	$6,600
Prepaid Insurance	0		Income Taxes Payable	$1,000
Inventory	$16,800		Dividends Payable	$-0-
Total Currents Assets	$70,800		Total Current Liabilities	$23,280
Property, Plant, & Equipment			Long Term Debt	$60,000
Land	$10,000		Stockholders Equity
Equipment	$40,000		Common Stock	$10,000
Accumulated Depreciation	($20,000)		Retained Earnings	$7,520
Total PPE	$30,000		Total Stockholders Equity	$17,520
Total Assets	$100,800		Total liab & SE	$100,800

Please refer to attached document to complete the following:

4.Cash budget

5. Budget/performance income statement

6. Budget/performance balance sheet