The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods ashse Cash Accounts receivable Current assets as of March 31: $ 8,000 $ 22,800 $42,600 Building and equipment, net $130,800 $ 25,425 $150,800 27,975 Inventory Accounts payable Common stock Retained earnings a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) 55,e00 April May June July 71,000 $76,800 $101,000 $ 52,800 c. Sales are 60% for cash and 40% on credit. Credit sales are collected the month following sale. The accounts receivable at March d. Each month's ending inventory should equal 80% of the following month's budgeted cost of f Monthly expenses are as follows: commissions, 12% of sa g. Equipment costing $2,000 will be purchased for cash in April 31 are a result of March credit sales goods sold If 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 les, rent, S2.800 per month, other expenses (excluding depreciation), 6% accounts payable at March 31 are the result of March purchases of inventory of sales Assume that agreement with a local bank that allows the company to borrow in increments of S t these expenses are paid monthly Depreciation is $981 per month (includes depreciation on new assets) h. Management would like to maintain a minimum cash balance o f at least $4,000 at the end of each month. The company has an 1,000 at the beginning of each month, up to a total loan balance of S20. The interest rate on these loans ist %pe month and for sin cty we wat assume that teest is not compounded The compary would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter