PROBLEM $2(30$ POINTS$)$ Show All Your Work as shown in class $($Use budget sheets to help you$)$

Yankee delivers candles. The company has an open line of credit to borrow from at the bank up to $$217,500$ per quarter at $2\%$ per month. Borrowing is in increments of $$1,000.$

a$.$ On January $1,$ the beginning of the first quarter, the company will have a cash balance of $$100,125.$ The company must maintain at least $$29,000$ in cash at end of each month.

b$.$ Actual sales for the last two months and budgeted sales for the first quarter follow $($all sales are on account$)$:

November $($actual$).q,$ $$543,750$

December $($actual$)q,$ $$652,500$

January. $q,$ $$870,000$

February $q,$ $$1,305,000$

March $q,.$$$696,000$

Past experience shows that $20\%$ of a month's sales are collected in the month of sale, $55\%$ in the month following sale, and $25\%$ in the second month following sale.

c$.$ Budgeted merchandise purchases and budgeted expenses for the first quarter are given below:

$\backslash$table$[[$Merchandise Purchases,JANUARY,FEBRUARY,MARCH$],[$Salaries & Wages,$$522,000,$$$580,000,$$$380,625$