The following data relate to the operations of Dillinger Company, a wholesale distributor of consumer goods: Current assets as of March 31 10,000 Cash Accounts receivable 26,100 Inventory 19,880 $300,000 Buildings and equipment (net) Accounts payable 52,500 56,000 Capital stock $247,480 Retained earnings a. Gross margin is 30% of sales. b. Actual and budgeted sales data: 87,000 March (actual) April 142,000 147,000 May 145,000 June 50,000 July c. Sales are 70% for cash and 30% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are the result of March credit sales. d. Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold e. 25% of a month's inventory purchases is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable at March 31 are a result of March purchases of inventory f. Monthly expenses are as follows: salaries and wages, $28,500; rent, $5,200 per month; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $7,000 per month (includes depreciation on new assets). g. Equipment costing $6,000 will be purchased for cash in April. h. The company must maintain a minimum cash balance of $7,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month; borrowing must be in multiples of $1,000. The annual interest rate is 12%. Interest is paid only at the time of repayment of principal; figure interest on whole months (1/12, 2/12, and so forth)