XYZ, Ltd. is a merchandising company that buys and sells a single merchandise. The company is preparing its annual budget for year 2022 and to this end it collected the following information:

• Balance Sheet on January 1, year 2022

ASSETS	EQUITY + LIABILITIES
Equipment	800.000	EQUITY	B
Accumulated depreciation	(60.000)	LIABILITIES
Merchandises	A	Payables (Suppliers)	10.655
Receivables (Clients)	15.375	Government (VAT)	18.561
Cash	7.000	Long-term bank loan	C
		Long-term loan's interests to be paid	D
TOTAL ASSETS	?	TOTAL EQUITY + LIABILITIES	?

• Budgeted Profit and Loss Account for year 2022

Description	Amounts (in )
1. Sales Revenues	187.500
2. Cost of Goods Sold (COGS)	90.000
3. Gross Profit	97.500
4. Variable Distribution Costs	9.375
5. Fixed Distribution and Administrative Costs	16.500
6. Financial Costs	E
7. Profit Before Taxes (PBT)	?

• Other information
  • Sales and purchases of merchandises are regular throughout the year, as well as each month and quarter. Sales collection period = 30 days; Suppliers payment terms = 45 days
  • Planned selling price = 25; Planned purchase price = 12
  • There is VAT on sales and purchases (VAT rate = 23%). The difference between VAT charged to clients and VAT paid to suppliers is calculated o a monthly basis. VAT payment terms to government = 60 days
  • On March 1, year 2020 the company obtained a long-term loan of 500.000 from its bank. The 500.000 loan is paid in five annual instalments that had started on March 1, year 2021. The loan bears annual interests (annual interest rate = 4%), which are paid on March 1 of each year, together with the capital instalment.
  • Variable distribution costs amount to 5% of monthly sales. Variable and fixed distribution and administrative costs are paid in the month they occur. Annual depreciation expenses are 5.500
  • Opening stocks and closing stocks of merchandises for year 2022 are, respectively, 1.300 units and 2.800 units.

REQUIRED:

1. Determine the values of A, B, C, D and E in the Balance Sheet on January 1, year 2022 and on the P&L of year 2022.;

Prepare the Cash Balance for each quarter of year 2022, indicating also those values to be considered on the Balance Sheet at December 31, year 2022.