The company plans cash for Jan of 2018. In the past, It has had to borrow money to offset a significant decline in sales. Below is the statement of financial position as at December 31, 2017.

Current
Cash	$20,000
Accounts receivable	520,000
Inventory	192,000
	732,000
PPE, net	6,000,000
	$6,732,000
Current
Operating loan	$200,000
Accounts payable	171,733
	371,733
Non-current borrowings	4,000,000
	4,371,733
Share capital	70,000
Retained earnings	2,290,267
	2,360,267
	$6,732,000

Other information: a. Cash collection i. % cash sales each month 10% ii. % credit sales collected in same month 20% iii. % credit sales collected in next month 40% iv. % credit sales collected in second month 40%

b. January total sales $400,000

c. November credit sales $500,000

d. December credit sales $400,000

e. Inventory information i. February total sales $300,000 ii. Gross profit ratio January and prior 40% iii. Gross profit ratio February 30% iv. % purchases paid in cash same month 30% v. % inventory on hand needed for next month 80%

f. Accounts payable at Dec. 31 all relate to inventory purchases and will be paid in full in January. g. Variable expenses as % of monthly sales 4%

h. Fixed expenses i. Depreciation $40,000 ii. Total January fixed expenses, including depreciation $200,000 i. Interest is paid monthly on opening balances of the operating loan and non-current debt. Interest rate per month: 1%

j. Income taxes will be paid in cash in early 2018. No income taxes were owing at December 31, 2017. the income tax rate on income before taxes is: 20% k. Monthly dividends paid to shareholders $20,000

l. Budgeted PPE purchases for January (depreciation will be unaffected) $10,000

m. January repayments of principal on non-current debt $40,000

n. Minimum cash balance needed at end of January $30,000

o. Any excess cash will be used to pay down the operating loan. Maximum operating loan balance at end of January is: $180,000 p. Any additional cash needs will be provided by issuing shares.

Question: Using the below budget worksheet to record the above information

ASSETS

=

LIABILITIES

+

S/H EQUITY

Trans.

Cash

+

Acc. Rec.

+

Invent.

+

PPE

=

Op. Loan

+

Acc. Pay.

+

L/T Debt

+

Share Capital

+

Ret. Earn.

Desc.