The following data relate to the operations of Liverpool Corporation, a wholesale distributor of consumer goods Current assets as of December 31 Cash $ 6000 Accounts receivable 36.000 Inventory....... 9800 Buildings and equipment net. 10.885 Accounts payable 30.550 Common shares 00.000 Retained earnings.. 30135 The gross margin is 30% of sales. b. Actual and budgeted sales data are as follows: December (actual) 56000 January 70.000 February... 80.000 March 85.000 April 55.000 a. c. 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. d. 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 f. Monthly expenses are as follows commissions. $12.000 rent. 51.800 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. & Equipment will be acquired for cash: 53.000 in January and $8.000 in February h. Management would like to maintain a minimum cash balance of $5.000 at the end of cach month. Assume the company can borrow at 0% interest and they do not pay any income tax. 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 Liverpool Corporation, a wholesale distributor of consumer goods Current assets as of December 31 Cash $ 6000 Accounts receivable 36.000 Inventory....... 9800 Buildings and equipment net. 10.885 Accounts payable 30.550 Common shares 00.000 Retained earnings.. 30135 The gross margin is 30% of sales. b. Actual and budgeted sales data are as follows: December (actual) 56000 January 70.000 February... 80.000 March 85.000 April 55.000 a. c. 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. d. 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 f. Monthly expenses are as follows commissions. $12.000 rent. 51.800 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. & Equipment will be acquired for cash: 53.000 in January and $8.000 in February h. Management would like to maintain a minimum cash balance of $5.000 at the end of cach month. Assume the company can borrow at 0% interest and they do not pay any income tax. 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