Toni Schmidt Acc350 9/10/2011 1) Schedule of expected cash collections: January February March Quarter Cash Sales $80,000 $120,000 $60,000 $260,000...

I need help finishing problem 4 pleaseAs of December 31 (the end of the prior quarter), the company’s general ledger showed thefollowing account balances:Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 48,000Accounts receivable . . . . . . . . . . . . 224,000Inventory . . . . . . . . . . . . . . . . . . . . . 60,000Buildings and equipment (net) . . . . . 370,000Accounts payable . . . . . . . . . . . . . . $ 93,000Capital stock . . . . . . . . . . . . . . . . . . 500,000Retained earnings . . . . . . . . . . . . . . 109,000$702,000 $702,000b. Actual sales for December and budgeted sales for the next four months are as follows:December (actual) . . . . . . $280,000January . . . . . . . . . . . . . . $400,000February . . . . . . . . . . . . . $600,000March. . . . . . . . . . . . . . . . $300,000April . . . . . . . . . . . . . . . . . $200,000c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the monthfollowing sale. The accounts receivable at December 31 are a result of December credit sales.d. The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.)e. Monthly expenses are budgeted as follows: salaries and wages, $27,000 per month: advertising,$70,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, includingdepreciation on new assets acquired during the quarter, will be $42,000 for the quarter.f. Each month’s ending inventory should equal 25% of the following month’s cost of goods sold.g. One-half of a month’s inventory purchases is paid for in the month of purchase; the other halfis paid in the following month.h. During February, the company will purchase a new copy machine for $1,700 cash. DuringMarch, other equipment will be purchased for cash at a cost of $84,500.i. During January, the company will declare and pay $45,000 in cash dividends.j. Management wants to maintain a minimum cash balance of $30,000. The company has anagreement with a local bank that allows the company to borrow in increments of $1,000 at thebeginning of each month. The interest rate on these loans is 1% per month and for simplicitywe will assume that interest is not compounded. The company would, as far as it is able, repaythe loan plus accumulated interest at the end of the quar