Westex Preducts is a wholesale distributor of industrial cleaning products. When the treasurer of Westex Products approached the company's bank late in the current year seeking short term financing, he was told that money was very tight and that any borrowing over the next year would have to be supported by a detailed statement of cash collections and disbursements. The treasurer also was told that it would be very helpful to the bank if borrowers would indicate the quarters in which they would be needing funds, as well as the amounts that would be needed, and the quarters in which repayments could be made: Because the treasurer is unsure as to the particular quarters in which bank financing will be needed, he has assembled the following information to assist in preparing a detaled cash budget: a Bucgeted sales and merchandise purchases for next yeat, as well as actual sales and purchases for the last quarter of the current year, are. b. All sales are on account. The company nomally collects 65% of a quarter's sales before the quarter ends and another 36% in the following quater The remainder is uncollectible. This pattem of collections is now being experienced in the curtent year's fourth: quarter actisal data. c. Eighty percent of a quarter's merchandise putchases are paid for within the quarter The remainder is paid for in the following quarter a Selling and admunistrative experses for next year are budgeted at $50,000 per quarter plus 15% of sales. Of the fored arnount, $20,000 each quartur in depreciation. e. The company will pay $10.000 in dividends each quartet. f Land purchases of $75,000 will be made in the second quartec, and purchases of $48,000 wall be made in the third quarter. These prethases wit be for cash 9. The Cash account conained $10,000 at the end of the curient yeat. The treasurer feets that this reprecients a minimum balance that must be maintained h. The companys bank alows borowing in increments of $1,000 at the beginning of each quarter, up to a total loan bolarice of Stpo,000. The interest rate on these loans is 2.5s per quarter and for simplicity we will assume that intereat is not cocmpounded. The company would, as far as it is able, repay the ioan plus occumulated inferest at the end of the year. 1. At present, the company has no ioans outstanding Complete this question by entering your answers in the tabs below