The marketing department has estimated sales in units as follow:

March (actual)..... 18,000

April.... 21,000

May..... 25,500

June.... 27,000

July..... 15,000

The selling price of each unit is $5.

Sales are 20% for cash and 80% on credit.

All payments on credit sales are collected in the month following the sale.

The accounts receivable at March 31 are a result of March credit sales.

Monthly selling and administrative expenses are budgeted as follows:

Salaries and wages, $11,250 per month

Shipping, 6% of sales

Advertising, $9,000

Other expenses, 4% of sales

Depreciation, including depreciation on new assets acquired during the quarter, will be $9,000 for the quarter.

Equipment purchases during the quarter will be:

April $17,250

May $4,500

Dividends of $5,205 will be paid in June.

Management wants to maintain a minimum cash balance of $8,000.

The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000.

Interest is 1% per month

Nordic can repay the loan at the end of the quarter if it is able to do so.

1A) What amount will Nordic Company plan to borrow during June?

1B) How much are the current assets at June 30th?

Nordic Company Balance Sheet March 31, 2020 Assets Cash Accounts Receivable Inventory Buildings & equipment (net) $13,500 $72,000 $18,900 $321,150 $425,550 Total Assets $27,450 Liabilities & Owners' Equity Liabilities Accounts Payable Owners' Equity Capital Stock Retained earnings $285,000 $113,100 Total liab. & Owners' equity $425,550