PLEASE SOLVE PARTS 4, 5 AND 6 URGENTLY FOR A POSITIVE RATING!!

PLEASE SOLVE PARTS 4 TO 6 AS I ALREADY HAVE ANSWERS UPTO 3!!! PLEASE DONT LEAVE IT OUT

The following data relate to the operations of Lim Corporation, a wholesale distributor of consumer goods: Current assets as of December 31: Cash $ 6,000 Accounts receivable 36,000 Inventory 9,800 Buildings and equipment, net 110,885 Accounts payable 32,550 Common shares 100,000 Retained earnings 30,135 a. The gross margin is 30% of sales. b.Actual and budgeted sales data are as follows: December (actual) January February March April $60,000 70,000 80,000 85,000 55,000 c. Sales are 40% for cash and 60% on credit. Credit sales are collected in the month following sale. The accounts receivable at December 31 are the result of December credit sales. d.Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold. e One-quarter of a month's inventory purchases is paid for in the month of purchase; the other three-quarters is paid for in the following month. The accounts payable at December 31 are the result of December purchases of inventory. f. Monthly expenses are as follows: commissions, $12,000; rent, $1,800; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly Depreciation is $2,400 for the quarter and includes depreciation on new assets acquired during the quarter. g.Equipment will be acquired for cash: $3,000 in January and $8,000 in February. 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 it to borrow up to a total loan balance of $50,000. The interest rate on these loans is 0.5% per month, and interest payments must be made at the end of each month. Assume all borrowing occurs at the beginning of a month. The company will, as far as it is able, repay outstanding loans at the end of each month. Required: 1. Using the data above, complete the following schedule: Schedule of Expected Cash Collections January February March Quarter Cash sales $ 28,000 $ 32,000 $ 34,000 $ 94,000 Credit sales 36,000 42,000 48,000 126,000 Total collections $ 64,000 $ 74,000 $ 82,000 $ 220,000 2. Using the data above, complete the following: Merchandise Purchases Budget January February March Quarter Budgeted cost of goods sold* $ 49,000 $ 56,000 $ 59,500 $ 164,500 Add desired ending 11,200 11,900 7,700 30.800 inventoryt Total needs 60,200 67,900 67,200 195,300 Less beginning inventory 9,800 11,200 11,900 32,900 Required purchases $ 50,400 $ 56,700 $ 55,300 $ 162,400 *$70,000 sales ~ 70% = $49,000. $80,000 * 70% * 20% = $11,200. Schedule of Expected Cash Disbursements-Merchandise Purchases January February March Quarter December purchases* $ 32,550 $ 32,550 January purchases 12,600 37,800 50,400 February purchases 14,175 42,525 56,700 March purchases 13,825 13.825: Total disbursements $ 45,150 $ 51,975 $ 56,350 $ 153,475 *Beginning balance of the accounts payable. 3. Using the data above, complete the following schedule: Schedule of Expected Cash Disbursements-Selling and Administrative Expenses January February March Quarter Commissions $ 12,000 $ 12,000 $ 12,000 $ 36,000 Rent 1,800 1,800 1,800 5,400 Other expenses 5,600 6,400 6,800 18,800 Total disbursements $ 19,400 $ 20,200 $ 20,600 $ 60,200 4. Using the data above, complete the following cash budget: (Round your intermediate calculations and final answers to the nearest whole dollar. Cash deficiency, repayments and interest should be indicated by a minus sign.) January February $ 6,000 $ 5,000 $ 64,000 74,000 70,000 79,000 March Quarter 5,000 $ 16,000 82,000 220,000 87,000 236,000 56,350 20,600 Cash balance, beginning Add cash collections Total cash available Less cash disbursements: For inventory For operating expenses For equipment Total disbursements Excess deficiency) of cash Financing Borrowings Repayments Interest Total financing Cash balance, ending 45,150 19,400 3,000 67,550 2,450 51,975 20,200 8,000 80,175 (1,175) 0 153,475 60,200 11,000 224,675 11,325 76,950 10,050 2,563 6,219 8,782 13 44 8,782 8,782 57 (57) 11,268 2,550 6,175 (8,782) 1,268 $ 5,000 $ 5,000 $ $ 5. Prepare an absorption costing income statement for the quarter ended March 31. Lim Corporation Income Statement For the Quarter Ended March 31 Cost of goods sold: 0 0 0 Selling and administrative expenses: 0 0 6. Prepare a balance sheet as of March 31. Lim Corporation Balance Sheet March 31 Assets Current assets: Total current assets 0 Total assets $ 0 Liabilities and Stockholders' Equity Stockholders' equity: 0 Total liabilities and stockholders' equity $ 0