Assume Nordstrom prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for one of its stores (in thousands). Cash NORDSTROM Balance Sheet March 31 Liabilities and Stockholders' Equity $ 2,525 Merchandise purchases payable $2,400 2,040 3,400 Dividends payable 710 Stockholders' equity 8,005 Assets Accounts receivable Inventory Prepaid Insurance 150 Fixtures 3,000 $11,115 Total liabilities and equity $11,115 Total assets Actual and forecasted sales for selected months in the upcoming year are as follows: Month (in thousands) Sales Revenue January February March April May June July August $2,600 2,700 3,000 3,600 3,800 3,500 3,200 4,000 Monthly operating expenses are as follows: Wages and salaries $750 Depreciation 75 Advertising Other costs 55 350 Cash dividends for the store of $710 thousand are declared during the third month of each quarter and are paid during the first month of the following quarter. Operating expenses, except insurance, rent, and depreciation are paid as incurred. The prepaid insurance is for five more months. Cost of goods sold is equal to 60% of sales. Ending inventories are sufficient for 150% of the next month's cost of sales. Purchases during any given month are paid in full during the following month. Cash sales account for 50% of the revenue. Of the credit sales, 60% are collected in the next month and 40% are collected in the month after. Money can be borrowed and repaid in multiples of $100 thousand at an interest rate of 12% per year. The company desires a minimum cash balance of $2 million on the first of each month. At the time the principal is repaid, interest is paid on the portion of principal that is repaid. All borrowing is at the beginning of the month, and all repayment is at the end of the month. Money is never repaid at the end of the month it is borrowed. (f) Prepare a budgeted balance sheet as of June 30. NORDSTROMS Budgeted Balance Sheet (in thousands) June 30 Assets $ Cash Accounts receivable 0x 0x Merchandise payable Dividend payable Liabilities and Equity $ 0× 0x Inventory 0x Prepaid insurance 0x Fixtures 0× $ Total assets 0x Stockholders' equity 0x Total liab. & equity 0x