Star Ltd is a 4s sbop in Beijing. It makes profits by selling cars and providing after-sales and mairsenaroe service. Additional information (1) Sales revenue is collected at 25% in the month of sales, 70% in the monlt following the moxith of sales and 4% in the secoul month followirg the sales Arry balance uricollecial should be written off as bed debts. In addition, service revenue is fully collected in the month of service renderod. (2) Purchases are paid 20% in the morrh of purehese and the remaining been paid a month following the purchases. Purchases Jaruary250,000Tebruary375,000March200,000 (3) A forklif costing $48,000 would te purctaaed at the beginning of January 2021 by ayual installment within the next twelve months. In addition, the company will buy new equipnent in casis $5,000 to replace the old equipment in April 2021. (4) Morrhly administrative expenses inelude $5,000 depreciation. Insumance of $2.000 will be paid at the first moxith of each quarter (5) Star I dd wuuld beriow \$100,000 six-munth loan from the bank in Jaruary 2021 al $% arrnual interest rale. Principle should be paid in one lump sum at the end of June 2021 Irlerest is paid quarterly in artears with first quarter expenses of been paid at the beginning of the scoond quarter (6) Other expenses are paid quarlerly in arrears with firsl qusater expenses of $1,300 beer paid at the begirning of the second yuarler. (7) Cash balarce at the end of firsl qusater 2021 is estimaled to be $140,000 \$tar I tid has to mairsain a minimum cash level of $100,000 monthly