Prepare a balance sheet as of June 30. n a. As of March 31 (the end of

Prepare a balance sheet as of June 30.

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a. As of March 31 (the end of the prior quarter), the company's balance sheet showed the following account balances: Current quarter to be analyzed is 2nd Quarter (Apr. thru June) $ 6,700 36,900 11,130 120,000 Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable $ 32,880 Common stock 100,000 Retained earnings 41,850 $174,730 $174,730 Actual and budgeted sales are as follows: March (actual) April May $61,500 $79,500 $88,800 $89,400 $58,100 June July c. Sales are 40% for cash and 60% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales. d. The company's gross margin percentage is 30% of sales. (In other words, COGS is 70% of sales.) e. Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold. f. One-quarter of a month's inventory purchases is paid for in the month of purchase; the other three- quarters are paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. g. Monthly expenses are as follows: commissions, $12,150; rent, $2,650; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $2,550 for the quarter and includes depreciation on new assets acquired during the quarter. h. Equipment will be acquired for cash: $3,830 in April and $8,100 in May. i. Management would like to maintain a minimum cash balance of $5,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month (if needed to maintain the $5,000 cash balance), The company can borrow up to a total loan balance of $50,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. b. a. As of March 31 (the end of the prior quarter), the company's balance sheet showed the following account balances: Current quarter to be analyzed is 2nd Quarter (Apr. thru June) $ 6,700 36,900 11,130 120,000 Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable $ 32,880 Common stock 100,000 Retained earnings 41,850 $174,730 $174,730 Actual and budgeted sales are as follows: March (actual) April May $61,500 $79,500 $88,800 $89,400 $58,100 June July c. Sales are 40% for cash and 60% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales. d. The company's gross margin percentage is 30% of sales. (In other words, COGS is 70% of sales.) e. Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold. f. One-quarter of a month's inventory purchases is paid for in the month of purchase; the other three- quarters are paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. g. Monthly expenses are as follows: commissions, $12,150; rent, $2,650; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $2,550 for the quarter and includes depreciation on new assets acquired during the quarter. h. Equipment will be acquired for cash: $3,830 in April and $8,100 in May. i. Management would like to maintain a minimum cash balance of $5,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month (if needed to maintain the $5,000 cash balance), The company can borrow up to a total loan balance of $50,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. b.