The following data relate to the operations of Picanuy Corporation, a wholesale distributor of consumer goods Current assets as of December 31 6,800 Cash Accounts receivable 36,480 9,900 Inventory 119,200 Buildings and equipment, net 32,960 Accounts payable 100,000 Capital stock 39,420 Retained earnings 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 $60,800 December (actual $69,300 January February $76,800 $86,300 March $73,800 Apr 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. Half of a month's inventory purchases is paid for in the month of purchase; the other half 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, $9,120; rent, $1,750, other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $2,570 for the quarter and includes depreciation on new assets acquired during the quarter. g. Equipment will be acquired for cash: $3,300 in January and $9,500 in February