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1. In Sipan's cash budget for this first month, how much money will Sipan need to borrow at month end?
2. In Sipan's budgeted income statement for this first month, what will net income (loss) be for this first month?
3. In Sipan's budgeted balance sheet at the end of this first month, at what amount will accounts receivable be shown?

Sipan Retail Company was recently created with a beginning cash balance of $12,000. The owner expects the following for the first month of operations: Cash sales to customers...... $8,000 Sales on account to customers..... $30,000 $12,000 Cash collected from account customers. Cost of merchandise purchased..... $35,000 $24,500 Cash paid for merchandise purchased.. Cost of merchandise sold $26,600 Cash paid for display cases. $9,600 Selling and administrative expenses $4,000 The display cases above were purchased at the beginning of the month and are being depreciated at a rate of $200 per month. This amount is included in the selling and administrative expenses figure above. All other selling and administrative expenses are paid as incurred. Sipan wants to maintain a cash balance of $10,000. Any amount below this can be borrowed from a local bank as needed in increments of $1,000. All borrowings are made at month end

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