A B C D E F G H d. Each month's ending inventory should equal: 30%...

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A B C D E F G H d. Each month's ending inventory should equal: 30% of the following month's budgeted COGS. This is a merchandising business. Because of this, there is no direct materials, direct labor or MOH (we are not making units). e. 50% of a month's inv purchases are paid in the month of purch. 50% are paid in the following month. f. Monthly expenses are as follows (paid monthly): Rent 9,800 2,000 10% of sales 1,100 (includes new assets purchased this quarter) Commissions Other expenses (excluding depr) 1 Depreciation per month: 2 g. Equipment will be acquired for cash: 4 May 8000 June 4300 7 h. A dividend will be paid in April 1500 100 19 50 61 i. Manny would like to maintain a minimum cash balance of $5000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1000 at the beginning of each month, up to a total loan balance of $50,000. The interest rate on these loans is 16% annually, 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. A borrowing in the last month will be repaid the following quarter with interest. A B C D E F G H d. Each month's ending inventory should equal: 30% of the following month's budgeted COGS. This is a merchandising business. Because of this, there is no direct materials, direct labor or MOH (we are not making units). e. 50% of a month's inv purchases are paid in the month of purch. 50% are paid in the following month. f. Monthly expenses are as follows (paid monthly): Rent 9,800 2,000 10% of sales 1,100 (includes new assets purchased this quarter) Commissions Other expenses (excluding depr) 1 Depreciation per month: 2 g. Equipment will be acquired for cash: 4 May 8000 June 4300 7 h. A dividend will be paid in April 1500 100 19 50 61 i. Manny would like to maintain a minimum cash balance of $5000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1000 at the beginning of each month, up to a total loan balance of $50,000. The interest rate on these loans is 16% annually, 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. A borrowing in the last month will be repaid the following quarter with interest.