Use the following information budgeted balance sheet for XYZ Merchandising as of 3/31/20.

XYZ Merchandising

Balance Sheet

12/31/19

AssetsLiabilities

Cash$110,000Account Payable0

Inventory 24,000

Property/Plant/Equipment (net)95,000Equity

Common Stock110,000

Retained Earnings119,000

Total Assets$229,000Total Liabilities & Equity$229,000

XYZ Merchandising estimates the following sales (assume all sales are on credit and they collect the money in the month following the sale):

January300 units

February310 units

March320 units

The business estimates the following purchases (assume all purchases are on credit and they will pay the amount owed in the month following the purchase):

January90 units

February 250 units

March 300 units

The estimated sales price is $100 per unit.XYZ Merchandising estimates that each unit will cost them $70.The cost of goods sold is estimated to be $65,100. The business estimates total operating expenses of $8,000 each month (depreciation expense is included in the total and is $1,000 each month). The operating expenses will be paid the following month (January expenses will be paid in February, February expenses will be paid in March, and March expenses will be paid in April).