The following data relate to the operations of Gaudreau Company, which distributes consumer goods: Current assets as of December 31 Cas.. Accounts receivable.. Inventory. $6,000 $36,000 $9,800 Buildings and equipment, net ..$110,885 Accounts payable Common shares.. Retained earnings $32,550 $100,000 $30,135 a. The gross margin is 30% of sales. (In other words, cost of goods sold is 70% of sales.) b. Actual and budgeted sales data are as follows: December (actual) .. January. February.. March.... April. $60,000 $70,000 $80,000 $85,000 $55,000 C. Sales are 40% for cash and 60% on credit. Credit sales are collected in the month following sale. The accounts receivable at December 31 are the result of December credit sales. Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold d e. One-quarter of a month's inventory purchases is paid for in the month of purchase; the other three-quarters is paid for in the following month. The accounts payable at December 31 are the result of December purchases of inventory e. One-quarter of a month's inventory purchases is paid for in the month of purchase the other three-quarters is paid for in the following month. The accounts payable at December 31 are the result of December purchases of inventony f. Monthly expenses are as follows: commissions, $12,000; rent, $1,800; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $2,400 for the quarter and includes depreciation on new assets acquired during the quarter. g. Equipment will be acquired for cash: $3,000 in January and $8,000 in February. h. Management would like to maintain a minimum cash balance of $6,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $50,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan (also in increments of $1,000) plus accumulated interest at the end of the quarter. Required: Using the data above: 1 Normal No Spac... Heading 1 Heading 2 Title Subtitle Required: Using the data above: 1. Complete the following schedule: Schedule of Expected Cash Collections January February March Quarter $28,000 Cash sales Credit sales Total collections 36,000 $64,000 2. Complete the following: Merchandise Purchasing Budget January February March Quarter $49,000* Budgeted cost of goods sold Add desired ending inventory Total needs Less beginning inventory Required purchases 11.200- $60,200 9.800 $50400 * $70,000 sales X 70%-$49,000. $80,000 X 70% X 20%-$11,200. itle Subtitle 3. Schedule of Expected Cash Disbursements -Merchandise Purchases January February MarchQuarter $32,550 50,400 December purchases January purchases February purchases March purchases Total disbursements $32,550 12,600 $37,800 $4 5,150 Beginning balance of the accounts payable 4. Complete the following schedule: Schedule of Expected Cash Disbursements- Selling and Administrative Expenses January February March Quarter Commissions Rent Other expenses Total disbursements. $12,000 1,800 5,600 $19.400 5. Complete the following cash budget: January February March Quarter Cash balance, beginning.6,000 Add cash collections.... 64,000 70,000 Total cash available. . Less cash disbursements: 45,150 For operating expenses19,400 3,000 67.550 Excess (deficiency) of cash2450 For equipment Financing Etc. 6. Prepare an absorption costing income statement, similar to the one shown in Schedule 9, for the quarter ended March 31. 7. Prepare a balance sheet as of March 31