Sales:

Oct $1000

Nov: $1500

Dec: $3000

What is the interest expense for Oct, Nov, and Dec and explain how to find it

Artero s balance sheet as of the end of September, 2014 was as follows. Artero Corporation Balance Sheet as of September 30, 2014 (in S Thousands) $ 50 Accounts receivable 700 Cash Accounts payableS 0 Notes payable Long-term debt Total liabilities 1,200 Equity Total 800 Inventories 500 400 Net fixed assets 750 800 Total assets $2,000 $2,000 All sales are made on credit terms of net 30 days and are collected the following month and no bad debts are anticipated. The accounts receivable on the balance sheet at the end of September thus will be collected in October. The October sales will be collected in November, and so on. Inventory on hand represents a minimum operating level (or "safety stock), which the company intends to maintain. Cost of goods sold average 80 percent of sales. Inventory is purchased in the month of sale and paid for in cash. Other cash expenses average 7 percent of sales. Depreciation is $10,000 per month. Assume taxes are paid monthly and the effective income tax rate is 40 percent for planning purposes. The annual interest rate on outstanding long term debt and bank loans (notes payable) is 12%. There are no capital expenditures planned during the period, and no dividends will be paid. The company's desired end-of-month cash balance is $80,000. The president hopes to meet any cash shortages during the period by increasing the firms notes payable to the bank. The interest rate on new loans will be 12%