The following data relate to the operations of Picanuy Corporation, a wholesale distributor of consumer goods:

Current assets as of December 31:
Cash	$	6,000
Accounts receivable	$	39,360
Inventory	$	10,710
Buildings and equipment, net	$	112,700
Accounts payable	$	32,280
Capital stock	$	100,000
Retained earnings	$	36,490

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)	$65,600
January	$76,500
February	$88,700
March	$92,200
April	$60,500

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 month's 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, $16,510; rent, $2,000; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $500 for the quarter and includes depreciation on new assets acquired during the quarter.
g.	Equipment will be acquired for cash: $3,790 in January and $8,990 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.

Required:
Using the data above:
1.	Complete the following schedule: (Omit the "$" sign in your response.)

Schedule of Expected Cash Collections
	January	February	March	Quarter
Cash sales	$30,600	$	$	$
Credit sales	39,360
Total collections	$69,960	$	$	$

2.	Complete the following: (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Round the "Schedule of Expected Cash Disbursements Merchandise Purchases" answers to 2 decimal places. Omit the "$" sign in your response.)

Merchandise Purchases Budget
	January		February	March	Quarter
Budgeted cost of goods sold	$53,550	*	$	$	$
Add desired ending inventory	12,418
Total needs	65,968
Less beginning inventory	10,710
Required purchases	$55,258		$	$	$

*$76,500 sales 70% = $53,550.

$88,700 70% 20% = $12,418.

Schedule of Expected Cash DisbursementsMerchandise Purchases
		January		February		March		Quarter
December purchases		$ 32,280.00	*	$		$		$ 32,280.00
January purchases		13,814.50		41,443.50				55,258.00
February purchases
March purchases
Total disbursements		$ 46,094.50		$		$		$

*Beginning balance of the accounts payable.

3.	Complete the following schedule: (Omit the "$" sign in your response.)

Schedule of Expected Cash DisbursementsSelling and Administrative Expenses
	January	February	March	Quarter
Commissions	$16,510	$	$	$
Rent	2,000
Other expenses	6,120
Total disbursements	$24,630	$	$	$

4.

Complete the following cash budget: (Borrow and repay in increments of $1,000. Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Picanuy Corporation
Cash Budget
	January	February	March	Quarter
Cash balance, beginning	$ 6,000.00	$	$	$
Add cash collections	69,960.00
Total cash available	75,960.00
Less cash disbursements:
For inventory	46,094.50
For operating expenses	24,630.00
For equipment	3,790.00
Total cash disbursements	74,514.50
Excess (deficiency) of cash	1,445.50
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)Ending inventoryNet operating income (loss)Beginning inventoryNet income (loss)SalesOther expensesGross marginGoods available for sale		$
Cost of goods sold:
(Click to select)Beginning inventoryNet operating income (loss)DepreciationEnding inventoryPurchasesGoods available for saleOther expensesGross margin	$
(Click to select)Other expensesEnding inventoryGross marginNet operating income (loss)DepreciationPurchasesSalesInterest expenses
(Click to select)Gross marginNet operating income (loss)PurchasesDepreciationSalesOther expensesBeginning inventoryGoods available for sale
(Click to select)Ending inventoryBeginning inventoryDepreciationOther expensesGross marginInterest expensesPurchasesNet operating income (loss)
(Click to select)Net operating income (loss)PurchasesSalesGoods available for saleBeginning inventoryNet income (loss)Gross marginInterest expense
Selling and administrative expenses:
(Click to select)Beginning inventoryRentNet operating income (loss)Goods available for saleGross marginDepreciationCommissionsOther expenses
(Click to select)RentBeginning inventoryDepreciationCommissionsOther expensesNet operating income (loss)Gross marginGoods available for sale
(Click to select)Goods available for saleBeginning inventoryOther expensesNet operating income (loss)CommissionsDepreciationGross marginRent
(Click to select)Goods available for saleBeginning inventoryCommissionsDepreciationOther expensesGross marginRentNet operating income (loss)
(Click to select)SalesNet operating income (loss)CommissionsEnding inventoryGoods available for saleDepreciationPurchasesGross margin
(Click to select)Beginning inventoryNet operating income (loss)Gross marginInterest expenseSalesDepreciationEnding inventoryOther expenses
(Click to select)SalesOther expensesGoods available for saleGross marginDepreciationEnding inventoryInterest expenseNet income (loss)		$

6.	Prepare a balance sheet as of March 31. (Be sure to list the assets and liabilities in order of their liquidity. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Picanuy Corporation Balance Sheet March 31
Assets
Current assets:
(Click to select)CashInventoryAccounts payableFixed assets-netAccounts receivable		$
(Click to select)Accounts receivableAccounts payableCashInventoryFixed assets-net
(Click to select)Fixed assets-netAccounts payableCashInventoryAccounts receivable
Total current assets
(Click to select)InventoryCashAccounts receivableFixed assets-netAccounts payable
Total assets		$
Liabilities and Stockholders Equity
(Click to select)Accounts receivableCapital stockRetained earningsBank loan payableAccounts payable		$
(Click to select)Accounts receivableCapital stockRetained earningsBank loan payableAccounts payable
Stockholders' equity:
(Click to select)Accounts receivableCashAccounts payableBank loan payableCapital stock	$
(Click to select)CashAccounts payableRetained earningsAccounts receivableBank loan payable
Total liabilities and stockholders' equity		$