Can someone tell me where I went wrong here:

Problem 5	Problem 5	Problem 5
Problem 5.1 - Budget Worksheet	Notes/Working Solutions			Notes/Solutions		Notes/Working Solutions		Notes/Working Solutions	Notes/Working Solutions
																						Assets		Sales		Variable exp.	$25,000					i.	Monthly cash dividends paid to shareholders	$20,000
		ASSETS	=	LIABILITIES	+	S/H EQUITY			Current				November	December	January	February		Fixed exp.	$35,000		a.	Cash collection		j.	Budgeted PPE purchases for January	$60,000
Trans.		Cash	+	Acc. Rec.	+	Invent.	+	PPE	=	Op. Loan	+	Acc. Pay.	+	L/T Debt	+	Common Shares	+	Ret. Earn.		Desc.		Cash	$20,000		Credit Sales	$ 0	$ 360,000	$ 225,000	$ 360,000		Interest	$30,000		i.	November credit sales	$0	k.	January repayments of principal on non-current debt	$50,000
	Accounts receivable	252,000				30%	30%	30%		Interest O/P	$1,000		ii.	December credit sales	$360,000	l.	Desired minimum cash balance at end of January	$20,000
Cf.		$20,000		$252,000		$105,000		$4,000,000		$100,000		$122,400		$3,000,000		$120,000		$1,034,600			0	Inventory	105,000			0	108,000	67,500	108,000		Taxes			iii.	% cash sales each month	10%	m.	Maximum operating loan balance at end of January is	$200,000
a. (v.)		252,000		(252,000)																Dec. sales collected	0		377,000											iv.	% credit sales collected in same month	30%	n.	Any excess cash will be used to pay down the operating loan.
a. (iv.)		67,500		(67,500)																Jan. sales collected	0	PPE, net	4,000,000		Collection of Month Prior	$ 0	$ 0	$ 360,000	$ 225,000					v.	% credit sales collect in next month	70%	o.	Any cash not able to be provided by the operating loan will be raised by issuing common shares.
a. (iii.)		25,000		225,000														250,000		Jan. sales	0		$4,377,000				70%	70%	70%					vi.	% credit sales collected in second month	0%
b. (iv.)		(20,000)										(20,000)								Inventory Payment A/P	0					0	0	252,000	$ 157,500					b.	January total sales	$250,000
b. (v.)		(37,000)				63,000						126,000						(100,000)		Purchase/COGS	0	Liabilities		Cash Sales	$ 0	$ 0	$ 250,000	$ 400,000					c.	Inventory information
e.		(25,000)																(25,000)		Variable Expense	0	Current				0%	0%	10%	10%					i.	February total sales	$400,000
f.		(35,000)																(35,000)		Operating Exp.	0	Operating loan	$100,000			$ 0	$ 0	$ 25,000	$ 40,000					ii.	Gross profit ratio January	40%
g.		(31,000)																(31,000)		Interest	0	Accounts payable	122,400		Inventory					iii.	Gross profit ratio February	40%
h.												(11,800)						11,800		Income tax.	0		222,400			November	December	January	February					iv.	% purchases paid in cash same month	20%
i.		(20,000)																(20,000)		Dividends	0	Non-current borrowings	3,000,000					$ 250,000	$ 400,000					v.	% inventory on hand needed for next month's sales	70%
j.		(60,000)						60,000												PPE Purchase	0		3,222,400		(other half of Profit ratio 100-40=60%)			60%	60%					d.	Accounts payable at Dec. 31 all relate to inventory purchases and will be paid in full in January
k.		(50,000)												(50,000)						LT Repay	0						150,000	240,000					e.	Variable expenses as % of total sales, paid each month	10%
l.		(66,500)								(66,500)										Operating Loan Repay	0	Shareholders' Equity					70%	70%					f.	Fixed expenses
																					0	Common shares	120,000		Balance of Inventory Required			$ 105,000	$ 168,000					i.	Depreciation, including any January budgeted PPE purchases	$15,000
																					0	Retained earnings	1,034,600			November	December	January	February					ii.	Other fixed operating expenses, paid each month	$20,000
																					0		1,154,600		Sales			$ 250,000	$ 400,000					g.	Interest is paid monthly on opening balances of the operating loan and non-current debt. Interest rate per month:	1%
																					0		$4,377,000		Profit Ratio			40%	40%					h.	Corporate income tax rate	20%
Totals		$20,000		$157,500		$168,000		$4,060,000		$33,500		$216,600		$2,950,000		$120,000		$1,085,400			0				Cost of Goods sold			$ 100,000	$ 160,000						Income taxes are paid at the end of the fiscal year.
																									% of cash purchases			20%	20%
																												$ 20,000	$ 32,000
																									Inventory Purchase required			$ 85,000
Problem 5	Problem 5
5.2.2 Statement of Cash Flows		5.2.2 Statement of Financial Position
Audio File Products Ltd.		Audio File Products Ltd.		5.2.2 Statement of Cash Flows		5.3 Management Appraisal
Budgeted Income Statement		Budgeted Statement of Financial Position		Audio File Products Ltd.		Based on the budgeted operating loan needs and the absence of a need to issue additional shares, AudioFile is positioned to meet its cash flow requirements through efficient management of collections, inventory, and expense control. The company's financial strategy prioritizes maintaining a minimum cash balance of $20,000 while ensuring operational liquidity and financial stability. In summary, AudioFile Products Ltd.'s financial planning for January 2024 reflects a structured approach to balancing operational needs, cash flow management, and shareholder returns, aiming to sustain growth and profitability amidst seasonal sales fluctuations.
For the Month ended January 31, 2024		For the Month ended January 31, 2024		Statement of Cash Flows
																			For the Month ended January 31, 2024
	Sales				$250,000					Assets
	Variable Expenses									Current						Operating Activities
	COGS		$100,000								Cash		$20,000				Cash from Clients	$344,500
	Other		25,000		125,000						Accounts receivable		157,500				Cash paid to suppliers	(57,000)
	Cont. marg.				125,000						Inventory		168,000				Cash for other operat.	(60,000)
	Fixed Expenses														345,500				Interest exp.	(31,000)
		Depreciation				15,000							PPE, net		4,060,000							196,500
	Dep'n	Other		20,000		35,000												$4,405,500		Investing Activities
	Income before Taxes				90,000					Liabilities		Purchase of PPE			(60,000)
	Int. exp.	Interest Expense		31,000		31,000
	Income before Taxes				59,000					Current						Financing Activitings
	Inc. tax exp.				11,800		11,800						Accounts payable				216,600				Dividends Paid	(20,000)
	Net income						$70,800						Operating Plan				33,500				Pament of L/T debt	(116,500)
																		250,100				Change in C&CE			(136,500)
													Long Term Debt		2,950,000				C&CE opening			20,000
5.2.2 Statement of Changes in Equity									3,200,100		C&CE ending			$20,000
Audio File Products Ltd.		Shareholders Equity
Statement of Changes in Equity		Shares		120,000				Represented by
For the Month ended January 31, 2024		Retained Earnings		1,085,400				Cash	$20,000
		Common Shares		Retrained Earnings		Total Equity										1,205,400		Operating loan	$33,500
																	$4,405,500					13,500
Opening Balance		$120,000		$1,034,600		$1,154,600
Shares Issues		$0		$0		$0
Dividends		$0		-$20,000		-$20,000
Net Income		$0		$70,800		$70,800
Ending Balance		$120,000		$1,085,400		$1,205,400