The following data relate to the operations of Lim Corporation, a wholesale distributor of con- sumer goods: Current assets as of December 31 Cash ......... Accounts receivable. Inventory..... Buildings and equipment, net.. Accounts payable Common shares Retained earnings $ 6,000 36000 9800 110.885 32550 100.000 30135 The gross margin is 30% of sales. b. Actual and budgeted sales data are as follows: December (actual) January February March. Apri $60.000 70.000 80.000 85.000 55.000 c d. Sales are 40% for cash and 60% on credit. Credit sales are collected in the month follow ing 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 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, 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 52400 for the quarter and includes depreciation on new assets acquired during the quarter Equipment will be acquired for cash: 53.000 in January and $8.000 in February Management would like to maintain a minimum cash balance of 55.000 at the end of each month. The company has an agreement with a local bank that allows it to borrow up to a total loan balance of $50.000. The interest rate on these loans is 0.5% per month, and interest payments must be made at the end of each month. Assume all borrowing occurs at the beginning of a month. The company will, as far as it is able repay outstanding loans at the end of each month. The following data relate to the operations of Lim Corporation, a wholesale distributor of con- sumer goods: Current assets as of December 31 Cash ......... Accounts receivable. Inventory..... Buildings and equipment, net.. Accounts payable Common shares Retained earnings $ 6,000 36000 9800 110.885 32550 100.000 30135 The gross margin is 30% of sales. b. Actual and budgeted sales data are as follows: December (actual) January February March. Apri $60.000 70.000 80.000 85.000 55.000 c d. Sales are 40% for cash and 60% on credit. Credit sales are collected in the month follow ing 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 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, 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 52400 for the quarter and includes depreciation on new assets acquired during the quarter Equipment will be acquired for cash: 53.000 in January and $8.000 in February Management would like to maintain a minimum cash balance of 55.000 at the end of each month. The company has an agreement with a local bank that allows it to borrow up to a total loan balance of $50.000. The interest rate on these loans is 0.5% per month, and interest payments must be made at the end of each month. Assume all borrowing occurs at the beginning of a month. The company will, as far as it is able repay outstanding loans at the end of each month