Question
NEED HELP ASAP, check all numbers for all parts of the question and key words for table. 2 Following is selected information relating to the
NEED HELP ASAP, check all numbers for all parts of the question and key words for table.
2 Following is selected information relating to the operations of Kelly Company, a wholesale distributor Current assets as of March 311 Cash Accounts receivable. $18,000 30,000 20 Inventory 54,000 points Plant and equipment, net 153,000 38,000 200,000 17,000 Accounts payable Capital shares Retained earnings a. Gross margin is 25% of sales b. Actual and budgeted sales data are as follows: March (actual) April May June July $75,000 90,000 102,000 120,000 73,000 c. Sales are 60% for cash and 40% on credit Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. d. At the end of each month, inventory is to be on hand equal to 80% of the following month's sales needs, stated at cost e. One-half of a month's inventory purchases are paid for in the month of purchase; the other half are paid for in the following month The accounts payable at March 31 are a result of March purchases of inventory f. Monthly expenses are as follows: salaries and wages, 12% of sales; rent, $5,000 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $1,400 per month (includes depreciation on new assets) g Equipment costing $2,000 will be purchased for cash in April. h. The company must maintain a minimum cash balance of $7,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month; borrowing must be in multiples of $1,000. The annual interest rate is 12% Interest is paid only at the time of repayment of principal figure interest on whole months (1/12, 2/12, and so forth).
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