Groveland Company's balance sheet as of December 31 is provided below Assets Groveland Company Balance Sheet December 31 $12,500 20.000 Cash Accounts Receivable Inventory Plant and Equipment, net of depreciation Total Assets 22,500 145.000 $200.000 $25,000 20.000 Liabilities and Stockholders' Equity Accounts Payable Notes Payable Capital stock, no par Retained Earnings Total Liabilities and Stockholders' Equity 100.000 55.000 $200.000 In anticipation of preparing the operating budget for the upcoming period, the firm's accountant has gathered the following information: (a) Fifty percent of sales each month are cash sales and fifty percent are credit sales. Eighty percent of the credit sales are collected in the month of sale and the remainder is collected in the next month. Sales are budgeted at $160,000 for January (b) Inventory purchases are expected to total $100,000 during January, all on account Sixty percent of all purchases are paid for in the month of purchase and the remainder is paid in the following month. The inventory account is expected to have a $20,000 balance at January 31. (c) Selling and administrative expenses for January are budgeted at $50,000 (exclusive of depreciation) plus 10% of sales, 5&A expenses are paid in cash. Depreciation is budgeted at $1,500 for the month of January The notes payable and all interest charges will be paid in January. The interest expense is $200 The sales manager wishes to purchase a new display case for the showroom during January if sufficient funds are available. The equipment has a cost of $4,500. Groveland Company requires at least a $10,000 cash balance at the end of each month, Required: Can the company afford to purchase the display equipment without additional borrowing? Prepare a cash budget in good form for January to support your answer. Be sure to show your computations and to provide a clear answer as to whether they can purchase the equipment without additional borrowing