The balance sheet for the beginning of the year is given below: $ 20,000 Thruster Corporation Balance sheet Sept 30 2018 Assets Liabilities ish $ 25.000 Accounts Payable Accounts receivable 30,000 Line of Credit Inventory 2,500 Long term debt Current Assets 57,500 total liabilities Stock Capital Assets 200.000 Retained earnings local aus Total Assets $ 27.800 and equity Additional Information 150,000 170,000 80,000 7,500 $ 237.500 The surfboards sell for $800 each. 25% of the sales are cash sales and the remainder are accounts receivable paid the following month. The cost per board is $500 these costs are all paid the month following production Fixed costs are $132,000 paid in equal amounts each month Taxes are 25% you may assume the amount calculated on your income statement is paid in April The corporation pays a 20% dividend in May The company would like to maintain a minimum cash balance of $5,000 and will borrow on its line of credit when necessary and repay the line of credit as soon as they are able Required - 1. Complete the income statement and calculate the amount to be transferred to retained earnings. The beginning inventory is @ 500 per board. 2. Complete the schedules of collections and payments Complete the cash budget and balance sheet Bonus - use a formula to calculate the required borrowing and repayments. The formula should be able to recognize whether there will be borrowings or repayments - an if function perhaps. assumptions Production Schedule and Inv. incom selling price variable costs fixed costs tax rate dividends Collections Cash sales per month $ 800.00 $ 500.00 $132,000.00 $11,000.00 25% 20% 25%A/R 1 month 75% assumptions Production Schedule and Inv. incon Month Production Sales October November December January February March April May June July August September Beginning Inventory 5 22 49 81 113 145 172 189 176 148 70 32 42 42 42 42 42 42 42 42 42 42 42 42 Ending Inventory Inventory cost 25 22 $11,000 15 49 24,500 10 81 40,500 10 113 56,500 10 145 72,500 15 172 86,000 25 189 94,500 55 176 88,000 70 148 74,000 120 70 35,000 80 32 16,000 65 9 4,500