The following data relate to the operations of Shilow Company a wholesale distributor of consumer goods.

The  following data relate to the operations of Shilow Company a wholesale distributor of consumer goods. Current assets as of March 31st Cash  $               8,000.00 Accounts Receivable  $             20,000.00 Inventories  $             36,000.00 Building and Equipment, net  $         1,20,000.00 Accounts Payable  $             21,750.00 Capital Stock  $         1,50,000.00 Retained Earnings  $             12,250.00 a) The gross margin is 25% of sales. b) Actual and Budgeted sales data:- March(Actual)  $             50,000.00 April  $             60,000.00 May  $             72,000.00 June  $             90,000.00 July  $             48,000.00 c ) Sales are 60% of cash and 40% on credit. Credit sales are collected in the month following sales. The accounts receivable at March 31st are as a result of March credit sales. d) Each month ending inventory should equal 80% of the following month's budgeted cost of goods sold. e) One half of month's inventory purchases is paid for in the month  of purchase ;the other half is  paid for in the following month. The accounts payable at march 31st are the result of March purchases of inventory. f) Monthly expenses are as follows: Commission 12% of sales,rent$2500 per month; other expenses (excluding depreciation) 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month(includes depreciation on new  assets). g) Equipment costing $1500 will be paid for cash in April. h) Management would like to maintain a minimum cash balance of  at least 4000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow at the beginning of  each month, upto a total loan balance of $20,000.The interest rate of  these loans  is 1% per month and for simplicity  we will assume that interest is not compunded.The Company would ,as far as it is able, repay the loan plus accumulated interest at the end of the quarter.