one monti a are uncollectible fterthe all ct 50% f a month's sale 6C105 Howe Ltd. is trying to decide whether it is goingto need to The microcomputer will cost $8,800. tion about her operations as at December 31 Howe Ltd. sale and 459% two months after the sate 5 a loan in coming January to buy a new microcomputer system. The president, Joan Howe, has collected the following informa- Balance of selected ledger accounts 6. inventory as required under terms Of 2/10, het 30.dt always takes the 2% discouat, but records purchases at gross 1. Cash Accounts payable 7. Inventory costs $5 per unitk gross. 8. Other expenses, aTpad in cash as incurred, average about30% $2,500 of the sales dollar amount. Depreciation is part of these expenses and contr $3.000 per mont 2. Sales history and forecast (unit selling price $10) October November December January (actual) (actual) (actual) (forecast) $45,000 33,0007 45,00045 9. Howe Ltd. keeps a minimum cash balance of $4 60,000 s aInstructions 3. All sales are on-credit and are due 30 days aftert 4 Cash payments for Prepare a cash budget forDanuaryhdicating whether Howe Ltd. will need a loan to finance its computer acquisition. as follows: (wo-thirds in the month of purchase one-third ip the month after tha