Porter Electronics is a small subsidiary of a larger group specializing in distributing semiconductor components in Thailand. All sales and purchases of semiconductors are in US dollars. Therefore, its accounting records are also kept in US dollars. Data regarding its operations follow: Revenue in June 2021 was $550.000, Bu Ha Lin Sales are budgeted at $560,000 for July, $530,000 for August, and $510,000 for September. Collections are expected to be 30% in the month of sale, 69% in the month following the sale, and 1% uncollectible. The cost of goods sold is 80% of sales. ||* li The company purchases 50% of its merchandise in the month prior to the month of sale and 50% in the month of sale. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $105,500. Monthly depreciation is $45,000. Vi Bui Ha Linf Ignore taxes. The company has a policy to maintain a minimum of US$200,000 cash. It has arranged an overdraft facility of $500,000 at annual interest rate of 10%. Assume drawing down of overdraft, repayment of overdraft and interest payment take place on the final day of the month.

Balance Sheet of Porter Electronics @ 30 June 2021 Current Assets Cash Accounts Receivable (net of allowance for uncollectible accounts) Inventories Total current assets Non-current assets Property, plant and equipment (net of $500,000 accumulated depreciation) Total assets 200,000 379,500 270,000 849,500 1,458,000 2,307,500 Current liabilities Accounts payable 444,000 Equity Common stock Retained earnings Total equity Total liabilities and equity 1,700,000 163,500 1,863,500 2,307,500 lm Balance Sheet of Porter Electronics @ 30 June 2021 Current Assets Cash Accounts Receivable (net of allowance for uncollectible accounts) Inventories Total current assets Non-current assets Property, plant and equipment (net of $500,000 accumulated depreciation) Total assets 200,000 379,500 270,000 849,500 1,458,000 2,307,500 Current liabilities Accounts payable 444,000 Equity Common stock Retained earnings Total equity Total liabilities and equity 1,700,000 163,500 1,863,500 2,307,500 lm