The following data relate to the operations of Soper Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $8,000 Accounts receivable $ 20,000 Inventory $ 36,000 Building and equipment, net $120,000 Accounts payable $ 21,750 Common shares $150,000 Retained earnings $ 12,250 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $50,000 April $60,000 May $72,000 June $90,000 July $48,000 Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold. One-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 March 31 are the result of March purchases of inventory. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (includes depreciation on new assets). Equipment costing $1,500 will be purchased for cash in April. The company must maintain a minimum cash balance of $4,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month; borrowing must be in multiples of $1,000. The annual interest rate is 12%. Interest is paid only at the time of repayment of principal; calculate interest on whole months (1/12, 2/12, and so forth). Required: Using the preceding data: Complete the following: Schedule of Expected Cash Collections April May June Quarter Cash sales $36,000 Credit sales* 20,000 Total collections $56,000 *40% of prior month's sales Complete the following: Merchandise Purchases Budget April May June Quarter Budgeted cost of goods sold $45,000* $54,000 Add desired ending inventory 43,200 Total needs 88,200 Less beginning inventory 36,000 Required purchases $52,200 *For April sales: $60,000 sales 75% cost ratio = $45,000. $54,000 80% = $43,200 Schedule of Expected Cash DisbursementsMerchandise Purchases April May June Quarter March purchases $21,750 $21,750 April purchases 26,100 $26,100 52,200 May purchases June purchases Total disbursements $47,850 Complete the following: Schedule of Expected Cash Disbursements - Operating Expenses April May June Quarter Commissions $ 7,200 Rent 2,500 Other expenses 3,600 Total disbursements $13,300 Complete the following cash budget: Cash Budget April May June Quarter Cash balance, beginning $8,000 Add cash collections 56,000 Total cash available $64,000 Less cash disbursements For inventory $47,850 For expenses 13,300 For equipment 1,500 Total cash disbursements 62,650 Excess (deficiency) of cash $1,350 Financing: Prepare a balance sheet as of June 30