Cash balance = $8,241 Marketable investments = $64,000 (cost and fair value) Accounts receivables, net of...

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Cash balance = $8,241 Marketable investments = $64,000 (cost and fair value) Accounts receivables, net of allowance $81,500 Finished goods inventory = $41,000 Property, Plant & Equipment, net of accumulated depreciation = $352,645 Accounts payable = $38,155 Note payable (due Jan 2023) = $49,000 Stockholders' equity, consisting of common stock = $200,000 and retained earnings = $260,231 The accounts receivable at the end of 2023 will be collected in January 2024. Likewise, the accounts payable due at the end of December 2023 will be paid in January 2024. Sales for the next four months are expected to be as shown below: January 2024 = $205,000 February 2024 = $255,000 March 2024 = $300,000 April 2024 = $240,000 Going forward, it is expected that 50% of all monthly sales will be received immediately in cash; 30% of each month's sales will be collected in the following month; 15% will be collected in the second month following the month of sale; and the remaining 5% will be considered uncollectible. Cost of goods sold is 70% of sales. At the end of each month, the company would like to have an amount equal to 45% of the following month's cost of goods sold as its ending inventory. Also going forward only 200 of each Also, going forward, only 30% of each month's merchandise purchases have to be paid in cash in the same month. The remaining amount of the month's purchases is payable in the following month. The company accrues sales commission at the rate of 12% of the total sales for the month, which is paid at the end of each month. Rent of $4,000 is payable on the 1st of each month, and salaries of $10,000 are payable by the end of each month. All other cash-based expenses amount to 8% of the monthly sales and are paid by the end of each month. Depreciation is $1,000 per month. A dividend of $8,000 will be declared on January 15, 2024 and will be paid after 30 days. In 2023, the company sold one of its office buildings for $73,000 and the amount will be received in March 2024. This building was reported in the 2023 balance sheet at $48,000. Also in March 2024, the company will purchase new equipment of $15,000 and pay immediately in cash. In addition, the company will buy a piece of land for $60,000 in January 2024 and sign a 120-day note payable for it. Management likes to maintain a minimum cash balance of $5,000 at the end of each month. If the monthly cash balance is expected to fall short of this amount, the company will first sell its marketable investments (at the beginning of that month) in multiples of $1,000, and then draw on a line of credit, if needed. You can assume that the sale of investment will happen at the fair value per share as of January 1, 2024. If and when it is necessary to use the line of credit, the necessary amount will be borrowed in multiples of $1,000 at the beginning of the month in which such a shortfall is expected and will be repaid by the end of the quarter provided there is sufficient cash on hand at that time. Interest is charged by the bank @ 12% per year and is charged monthly depending on the amount of line of credit used for the month. [Do not use compounding of interest from month to month] All interest is paid when the amount of loan is repaid, typically by the end of the quarter as mentioned before. All interest is paid when the amount of loan is repaid, typically by the end of the quarter as mentioned before. Based on the above information, prepare for January 2024, February 2024 and March 2024, and for the 1st quarter of 2024 1. Schedule of expected cash collections 2. Merchandise purchase budget 3. 4. 5. 6. Schedule of expected cash disbursements for merchandise purchases Schedule of expected cash disbursements for selling & admin. expenses Cash budget Budgeted Income Statement (only for the whole quarter, not monthly) 7. Budgeted Balance Sheet (only at the end of March 2024) All amounts should be entered in dollars...rounded off to the nearest dollar amount. If a cell should not have any amount, leave it blank. B Likewise if a cell in column A should not have an entry, leave it blank. 4 F 5 Schedule of expected cash collections 6 January February March April Q-Total 7 Cash Sales 8 Cash (Previous Month sales Dec. 2023) 9 Cash (Previous 2 Month's Sales) 10 Uncollectible 11 12 13 Total collections 14 15 Merchandise purchase budget 16 17 COGS (70% of Sales) 18 Desired ending Inventory 19 Beginning Inventory 20 21 22 23 Total Merchandise Purchases Sheet1 January February March April Q-Total G B D E F Total Merchandise Purchases Schedule of expected cash disbursements for merchandise purchases Purchases Cash Payments Credit Payments Total payments for purchases January February March April Q-Total Budget of expected cash disbursements for selling and administrative expenses Sales Commission 5 Rent 5 Salaries 7 Other Expenses B Total payments for expenses 0 1 Cash budget 2 3 Beginning Balance 4 Cash Collection Sheet1 January February March April Q-Total January February March April Q-Total Beginning Balance 4 Cash Collection 5 Purch plus Expenses 5 7 8 9 Total cash available 0 Cash disbursements: 1 52 53 54 55 56 57 Total cash disbursements 58 Excess or deficiency 59 Financing: 60 61 62 63 64 Borrowing Repayments Interest Total financing January February March April Q-Total Current Assets A B C Balance Sheet 31-Mar 5 Total Current Assets Property, Plant and Equipment, net 3 0 Total Assets 2 Current Liabilities 03 04 05 06 07 Total Current Liabilities 08 Long-term Liabiilties 09 Stockholders' Equity: 10 11 Capital stock Retained earnings 6 -7 8 69 0 Sales Ending balance of cash Income Statement For the quarter ended March 31, 2023 1 Cost of goods sold: 2 73 74 Beginning inventory Purchases Cost of goods available for sale 75 Ending inventory 76 Cost of goods sold 7 Gross margin 78 79 30 Operating income 31 82 83 84 Income before tax 85 Income tax expense @ 21% 86 Net income 87 D 6 7 Total Current Liabilities 8 Long-term Liabiilties 99 Stockholders' Equity: 10 Capital stock 11 12 13 14 115 Retained earnings Total Liab. & Equity 116 117 Cash balance = $8,241 Marketable investments = $64,000 (cost and fair value) Accounts receivables, net of allowance $81,500 Finished goods inventory = $41,000 Property, Plant & Equipment, net of accumulated depreciation = $352,645 Accounts payable = $38,155 Note payable (due Jan 2023) = $49,000 Stockholders' equity, consisting of common stock = $200,000 and retained earnings = $260,231 The accounts receivable at the end of 2023 will be collected in January 2024. Likewise, the accounts payable due at the end of December 2023 will be paid in January 2024. Sales for the next four months are expected to be as shown below: January 2024 = $205,000 February 2024 = $255,000 March 2024 = $300,000 April 2024 = $240,000 Going forward, it is expected that 50% of all monthly sales will be received immediately in cash; 30% of each month's sales will be collected in the following month; 15% will be collected in the second month following the month of sale; and the remaining 5% will be considered uncollectible. Cost of goods sold is 70% of sales. At the end of each month, the company would like to have an amount equal to 45% of the following month's cost of goods sold as its ending inventory. Also going forward only 200 of each Also, going forward, only 30% of each month's merchandise purchases have to be paid in cash in the same month. The remaining amount of the month's purchases is payable in the following month. The company accrues sales commission at the rate of 12% of the total sales for the month, which is paid at the end of each month. Rent of $4,000 is payable on the 1st of each month, and salaries of $10,000 are payable by the end of each month. All other cash-based expenses amount to 8% of the monthly sales and are paid by the end of each month. Depreciation is $1,000 per month. A dividend of $8,000 will be declared on January 15, 2024 and will be paid after 30 days. In 2023, the company sold one of its office buildings for $73,000 and the amount will be received in March 2024. This building was reported in the 2023 balance sheet at $48,000. Also in March 2024, the company will purchase new equipment of $15,000 and pay immediately in cash. In addition, the company will buy a piece of land for $60,000 in January 2024 and sign a 120-day note payable for it. Management likes to maintain a minimum cash balance of $5,000 at the end of each month. If the monthly cash balance is expected to fall short of this amount, the company will first sell its marketable investments (at the beginning of that month) in multiples of $1,000, and then draw on a line of credit, if needed. You can assume that the sale of investment will happen at the fair value per share as of January 1, 2024. If and when it is necessary to use the line of credit, the necessary amount will be borrowed in multiples of $1,000 at the beginning of the month in which such a shortfall is expected and will be repaid by the end of the quarter provided there is sufficient cash on hand at that time. Interest is charged by the bank @ 12% per year and is charged monthly depending on the amount of line of credit used for the month. [Do not use compounding of interest from month to month] All interest is paid when the amount of loan is repaid, typically by the end of the quarter as mentioned before. All interest is paid when the amount of loan is repaid, typically by the end of the quarter as mentioned before. Based on the above information, prepare for January 2024, February 2024 and March 2024, and for the 1st quarter of 2024 1. Schedule of expected cash collections 2. Merchandise purchase budget 3. 4. 5. 6. Schedule of expected cash disbursements for merchandise purchases Schedule of expected cash disbursements for selling & admin. expenses Cash budget Budgeted Income Statement (only for the whole quarter, not monthly) 7. Budgeted Balance Sheet (only at the end of March 2024) All amounts should be entered in dollars...rounded off to the nearest dollar amount. If a cell should not have any amount, leave it blank. B Likewise if a cell in column A should not have an entry, leave it blank. 4 F 5 Schedule of expected cash collections 6 January February March April Q-Total 7 Cash Sales 8 Cash (Previous Month sales Dec. 2023) 9 Cash (Previous 2 Month's Sales) 10 Uncollectible 11 12 13 Total collections 14 15 Merchandise purchase budget 16 17 COGS (70% of Sales) 18 Desired ending Inventory 19 Beginning Inventory 20 21 22 23 Total Merchandise Purchases Sheet1 January February March April Q-Total G B D E F Total Merchandise Purchases Schedule of expected cash disbursements for merchandise purchases Purchases Cash Payments Credit Payments Total payments for purchases January February March April Q-Total Budget of expected cash disbursements for selling and administrative expenses Sales Commission 5 Rent 5 Salaries 7 Other Expenses B Total payments for expenses 0 1 Cash budget 2 3 Beginning Balance 4 Cash Collection Sheet1 January February March April Q-Total January February March April Q-Total Beginning Balance 4 Cash Collection 5 Purch plus Expenses 5 7 8 9 Total cash available 0 Cash disbursements: 1 52 53 54 55 56 57 Total cash disbursements 58 Excess or deficiency 59 Financing: 60 61 62 63 64 Borrowing Repayments Interest Total financing January February March April Q-Total Current Assets A B C Balance Sheet 31-Mar 5 Total Current Assets Property, Plant and Equipment, net 3 0 Total Assets 2 Current Liabilities 03 04 05 06 07 Total Current Liabilities 08 Long-term Liabiilties 09 Stockholders' Equity: 10 11 Capital stock Retained earnings 6 -7 8 69 0 Sales Ending balance of cash Income Statement For the quarter ended March 31, 2023 1 Cost of goods sold: 2 73 74 Beginning inventory Purchases Cost of goods available for sale 75 Ending inventory 76 Cost of goods sold 7 Gross margin 78 79 30 Operating income 31 82 83 84 Income before tax 85 Income tax expense @ 21% 86 Net income 87 D 6 7 Total Current Liabilities 8 Long-term Liabiilties 99 Stockholders' Equity: 10 Capital stock 11 12 13 14 115 Retained earnings Total Liab. & Equity 116 117