The following data relate to the operations of Picanuy Corporation, a wholesale distributor of consumer goods: Current assets as of December 31: Cash $ 6,700 Accounts receivable $ 36,900 Inventory $ 11,130 Buildings and equipment, net $ 120,000 Accounts payable $ 32,880 Capital stock $ 100,000 Retained earnings $ 41,850 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) $61,500 January $79,500 February $88,800 March $89,400 April $58,100 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. d. Each months ending inventory should equal 20% of the following months budgeted cost of goods sold. e. One-quarter of a months 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, $12,150; rent, $2,650; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $2,550 for the quarter and includes depreciation on new assets acquired during the quarter. g. Equipment will be acquired for cash: $3,830 in January and $8,100 in February. h. Management would like to maintain a minimum cash balance of $5,000 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 plus accumulated interest at the end of the quarter. Required: Using the data above: 1. Complete the following schedule: 2. Complete the following: Budgeted cost of goods sold for January = $79,500 sales 70% = $55,650. Add desired ending inventory for January = $88,800 70% 20% = $12,432. 3. Complete the following schedule: 4. Complete the following cash budget: (Borrow and repay in increments of $1,000. Cash deficiency, repayments and interest should be indicated by a minus sign. Round your answers to 2 decimal places.) 5. Prepare an absorption costing income statement for the quarter ended March 31.