Nordic Company Balance Sheet March 31, 2020 Assets Cash Accounts Receivable Inventory Buildings & equipment (net) $13,500 $72,000 $18,900 $321,150 $425,550 Total Assets $27,450 Liabilities & Owners' Equity Liabilities Accounts Payable Owners' Equity Capital Stock Retained earnings $285,000 $113,100 Total liab. & Owners' equity $425,550 clue #1- Sales Budget The marketing department has estimated sales in units as follows: March (actual)..........18,000 April..........................21,000 May........................25,500 June...........................27,000 July..... ....15,000 The selling price of each unit is $5. Clue #2- Cash Collections Schedule Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following the sale The accounts receivable at March 31 are a result of March credit sales. Clue #3- Accounts Receivable What is the budgeted accounts receivable amount for June 30th? Clue #4- Merchandise Purchases Budget The company's gross margin percentage is 40% of sales (i.e. cost of goods sold is 60% of sales). Each month's inventory should equal 30% of the following month's cost of goods sold. Clue #5- Cash Disbursements for Purchases Half of a month's inventory purchases are paid for in the month of purchase and half in the following month. Clue #6- Cash Disbursements for Selling and Administrative Expenses Monthly selling and administrative expenses are budgeted as follows: salaries and wages, $11,250 per month; shipping, 6% of sales; advertising, $9,000 per month; other expenses, 4% of sales; Depreciation, including depreciation on new assets acquired during the quarter, will be $9,000 for the quarter. What are total expected cash disbursements for selling and administrative expenses for June? Clue #7 - Cash Budget Equipment purchases during the quarter will be: April $17,250 . May $4,500 Dividends of $5,250 will be paid in June. Management wants to maintain a minimum cash balance of $8,000. 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 $20,000. . Interest is 1% per month Nordic can repay the loan at the end of the quarter if it is able to do so. The beginning cash balance has been given to you. What amount will Nordic Company plan to borrow (repay) during June? Note: Repayments must be listed in parenthesis