Problem 1: Clare County Air Compressor Company The following facts relate to the following six (6) questions. You must show all calculations for credit. Do calculations on separate sheet of paper. The Clare County Air Compressor Company sells a single product for $295.00. The first day of business was January 2, 2016. Budgeted sales and purchases for the coming First four months of business are given below: Sales are collected 20 per cent in the month of sale and 80 per cent in the following month. Purchases are paid for one month after purchase in total. In order to start of on the right foot, the company investors contributed $150,000 cash, which was the only asset on the books of the company as of January 2, 2016. A line of credit has been obtained by Clare County Air Compressor Company for $250,000. In order to maintain a positive cash balance, they may borrow in $25,000 increments from their line of credit, up to $250,000.

1. What are budgeted cash receipts in February?

2. What are budgeted accounts receivable at the end of March? 3. What are budgeted cash payments to suppliers of merchandise in February? 4. What is the budgeted cash balance for the end of February? 5. What are budgeted accounts payable for merchandise at the end of March? 6. How much money, if any, did Muskegon County Air Compressor need to borrow? Please attach pages for my calculations

Sales 700,000 Purchases 350,000 450,000 550,000 700,000 January February March 900,000 1100,000 1400,000 April Sales 700,000 Purchases 350,000 450,000 550,000 700,000 January February March 900,000 1100,000 1400,000 April