The balance sheet of Thorny Corp. as of December 31 is as follows Thorny Corp. Balance Sheet at December 31 Assets Cash Accounts receivable Raw materials Finished goods Land Plant and equipment Less: Accumulated depreciation S 41,700 192,000 102,240 64,400 50,000 $ 500,000 112,000 388.000 $838 340 Liabilities and Stockholders' Equity Accounts payable to suppliers Common stock Retained earnings S40,000 S 100,000 698 340 798340 The following information has been extracted from Thorny's records 1. Thorny manufactures and sells Gizmos. The company has projected unit sales for its product for the next five months as follows Units 7,000 8,000 10,000 8,000 7,000 January February March April May All sales are made on account. Gizmos sell for $60 each. Forty percent of all sales are collected in the month of sale. The remaining 60% are collected in the following month 2. Management desires to maintain the finished goods inventory for Gizmos at 20% of the following month's sales. Thorny's December 31 finished goods inventory consists of 1,400 Gizmos 3. In order to produce one Gizmo, the following units of raw materials are used