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The following data relate to the operations of Picanuy Corporation, a wholesale distributor of consumer goods: a. The gross margin is 30% of sales. (In

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The following data relate to the operations of Picanuy Corporation, a wholesale distributor of consumer goods: 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: 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 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 f. Monthly or December purchases of inventory. ing depreciation), $% ar follows: commissions, $12,000, rent, $1,800; other expenses (exclud$2,400 for the qu, 8% of sales. Assume that these expenses are paid monthly. Depreciation is g. Equipment will be acquired foldes depreciation on new assets acquired during the quarter. h. Management would like to maintain $3,000 in January and $8,000 in February. month. The company has an agreement with a local bhol balance of $5,000 at the end of each in increments of $1,000 at the beginning of a local bank that allows the company to borrow The interest rate on these loans is 1% per month month, up to a total loun balance of $50,000. est is not compounded. The company would, as fand for simplicity, we will assume that interlated interest at the end of the quarter. Required: Using the data above: 1. Complete the following schedule: 2. Complete the following: 3. Complete the following schedule: 4. Complete the following cash bedget 5. Prepare an income statement, , for the quarter ended March 31

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