Question 1: A company has the following expected sales: January February March April Sales ($) $60,000 $70,000 $65,000 $40,000 Sales in units ? ? ? ? Sales are collected as follows (all sales are on account): 45% in the month of sale, 55% the month after sale. There was no outstanding accounts receivable at the start of January. Each unit sells for $10. Management requires that ending inventory be 20% of the following month's budgeted sales; inventory on hand at January 1 was 1,000 units. Ending inventory for April is 800 units. Each unit requires 4 meters of fabric. Management would like to have ending inventory of fabric equal to 25% of the following month's production needs; there were 13,000 meters of fabric on hand on January 1. Management pays for fabric purchases as follows: 60% in the month of purchase, and 40% the month after purchase. Each meter of fabric costs $2.00. Accounts payable on January 1 was $40,000; all of which will be paid during January. Cash on hand at January 1 is $40,000. Management requires a minimum cash balance at the end of each month of $10,000. If necessary, management can borrow money from the bank at an annual interest rate of 4% in increments of $1,000. Borrowing occurs at the start of the month and repayments occur at the end of the month. For simplicity, ignore compound interest. Interest is only paid when the loan is repaid