The following data relate to the operations of Picanuy Corporation, a wholesale distributor of consumer goods Current assets as of December 31 6,000 36,000 Cash Accounts receivable $ 9,800 Inventory Buildings and equipment, net $ Accounts payable Capital stock 110,885 32,550 100,000 Retained earnings $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 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 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 $5,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow and repay in increments of $1,000 at the beginning of each month, up to a total loan balance of $50,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter Using the data above: 1. Complete the following schedule. (Omit the "$" sign in your response.) Schedule of Expected Cash Collections January $28,000 36,000 February March Quarter Cash sales Credit sales Total collections $64,000 2. Complete the following: (Leave no cells blank be certain to enter "o" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.) Merchandise Purchases Budget January $49,000* February March Quarter Budgeted cost of goods sold Add desired ending inventory 11,200t 60,200 9,800 Total needs Less beginning inventory Required purchases $50,400 -$70,000 sales 70%-$49,000 t$80,000 70% 20%-$11,200. Schedule of Expected Cash Disbursements-Merchandise Purchases January February March Quarter $32,550 12,600 December purchases January purchases February purchases March purchases $32,550 50,400 37,800 Total disbursements $45,150 Beginning balance of the accounts payable. 3. Complete the following schedule: (Omit the "$" sign in your response.) Schedule of Expected Cash Disbursements-Selling and Administrative Expenses February January $12,000 1,800 5,600 March Quarter Commissions Rent Other expenses Total disbursements $19,400 4. Complete the following cash budget: (Borrow and repay in increments of $1,000. Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Leave no cells blank - be certain to enter "O" wherever required. Omit the "$" sign in your response.) Picanuy Corporation Cash Budget January February March Quarter $6,000 64,000 Cash balance, beginning Add cash collections Total cash available Less cash disbursements: 70,000 For inventory For operating expenses For equipment 45,150 19,400 3,000 Total cash disbursements 67,550 Excess (deficiency) of 2,450 cash Financing Borrowings Repayments Interest Total financing Cash balance, ending 5. Prepare an absorption costing income statement for the quarter ended March 31 (Input all amounts as positive values. Omit the "$" sign in your response.) Picanuy Corporation Income Statement For the Quarter Ended March 31 (Click to select) Cost of goods sold (Click to select) Click to select) (Click to select) (Click to select) (Click to select) Selling and administrative expenses (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Click to select) Click to select) 6. Prepare a balance sheet as of March 31. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.) Picanuy Corporation Balance Sheet March 31 Assets Current assets: (Click to select) (Click to select) (Click to select) Total current assets Click to select) Total assets Liabilities and Stockholders' Equity Click to select) (Click to select) Stockholders' equity: (Click to select) (Click to select) Total liabilities and stockholders' equity