We really need to get this new material-handling equipment in operation just after the new year begins. I hope we can finance it largely with cash and marketable securities, but if necessary we can get a short-term loan down at MetroBank. This statement by Beth Davies-Lowry, president of Global Electronics Company, concluded a meeting she had called with the firms top management. Global is a small, rapidly growing wholesaler of consumer electronic products. The firms main product lines are small kitchen appliances and power tools. Marcia Wilcox, Global Electronics general manager of marketing, has recently completed a sales forecast. She believes the companys sales during the first quarter of 20x1 will increase by 10 percent each month over the previous months sales. Then Wilcox expects sales to remain constant for several months. Globals projected balance sheet as of December 31, 20x0 is as follows:

IThe following information applies to the questions displayed below.] "We really need to get this new material-handling equipment in operation just after the new year begins. I hope we can finance it largely with cash and marketable securities, but if necessary we can get a short-term loan down at MetroBank." This statement by Beth Davies-Lowry, president of Global Electronics Company, concluded a meeting she had called with the firm's top management. Global is a small, rapidly growing wholesaler of consumer electronic products. The firm's main product lines are small kitchen appliances and power tools. Marcia Wilcox, Global Electronics' general manager of marketing, has recently completed a sales forecast. She believes the company's sales during the first quarter of 20x1 will increase by 10 percent each month over the previous month's sales. Ihen Wilcox expects sales to remain constant for several months. Global's projected balance sheet as of December 31, 20xo is as follows: 40,000 Cash Accounts receivable 189,000 20,000 Marketable securities Inventory 198,000 Buildings and equipment (net of accumulated depreciation) 539,000 $986,000 Total assets 189,000 Accounts payable 20,625 Bond interest payable Property taxes payable 4,800 Bonds payable (15%, due in 20x6 330,000 350,000 Common stock Retained earnings 91,575 Total liabilities and stockholders' equity $986,000