The following data relate to the operations of Lim Corporation, a wholesale distributor of consumer goods:       Current assets as of December 31:            Cash $ 6,000        Accounts receivable   36,000        Inventory   9,800     Buildings and equipment, net   110,885     Accounts payable   32,550     Common shares   100,000     Retained earnings   30,135     a

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The following data relate to the operations of Lim Corporation, a wholesale distributor of consumer goods:

Current assets as of December 31:
Cash	$	6,000
Accounts receivable		36,000
Inventory		9,800
Buildings and equipment, net		110,885
Accounts payable		32,550
Common shares		100,000
Retained earnings		30,135

a.	The gross margin is 30% of sales.
b.	Actual and budgeted sales data are as follows:

December (actual)	$	60,000
January		70,000
February		80,000
March		85,000
April		55,000

c.	Sales are 40% for cash and 60% on credit. Credit sales are collected in the month following sale. The accounts receivable at December 31 are the result of December credit sales.
d.	Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold.
e.	One-quarter of a month's inventory purchases is paid for in the month of purchase; the other three-quarters is paid for in the following month. The accounts payable at December 31 are the result of December purchases of inventory.
f.	Monthly expenses are as follows: commissions, $12,000; rent, $1,800; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $2,400 for the quarter and includes depreciation on new assets acquired during the quarter.
g.	Equipment will be acquired for cash: $3,000 in January and $8,000 in February.
h.	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 it to borrow up to a total loan balance of $50,000. The interest rate on these loans is 0.5% per month, and interest payments must be made at the end of each month. Assume all borrowing occurs at the beginning of a month. The company will, as far as it is able, repay outstanding loans at the end of each month.

Required:

1.	Using the data above, complete the following schedule:

2.	Using the data above, complete the following:

   

3.	Using the data above, complete the following schedule:

       

4.	Using the data above, complete the following cash budget: (Round your intermediate calculations and final answers to the nearest whole dollar. Cash deficiency, repayments and interest should be indicated by a minus sign.)

           

5.	Prepare an absorption costing income statement for the quarter ended March 31.

         

6.	Prepare a balance sheet as of March 31.