1 1. IVIGHayCITICHIL WYLIN TIME LV IIIIIILaIII a IIIIIIIIIIII LASHI WaIaTILE VI aLICOSL 4,VVV OLLIE CHIU VI COLLI IIIVIII. THE LINIpally HIas an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. 30 points Required: Using the preceding data: 1. Complete the schedule of expected cash collections. 2. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. 3. Complete the cash budget. 4. Prepare an absorption costing income statement for the quarter ended June 30. 5. Prepare a balance sheet as of June 30. x Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the schedule of expected cash collections. Schedule of Expected Cash Collections April May June Quarter Cash sales $ 43,800 $ 46,800 $ 61,800 @ $152,400 Credit sales 22,800 29,200 31,200 83,200 Total collections $ 66,600 $ 76,000 $ 93,000 $235,600 0 Answer is not complete. 30 Complete this question by entering your answers in the limbs below. polnts Required 1 Required 2 Required 3 Required 4 Required 5 Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Budgeted cost of goods sold 5 54,?50 $ 53,500 5; r1250 0 $ 190,500 0 Add desired ending merchandise inventory 16,300 31,300 a 32,400 a 32,400 0 Total needs 101,550 120,300 109,550 222,900 Less beginning merchandise inventory 13,300 46,300 a 31,300 0 43,300 0 Required purchases 0 5?,?50 $ ?3,500 $ 4?,350 $ 1T9,100 Budgeted cost of goods sold for April = $73,000 saies x ?5% = $54,?50. Add desired ending inventory forApn'l = $53,500 =1 0 Answer is not complete. Complete this question by entering your answers in the tabs below. 30 pom]; . . . .. . Required 1 Required 2 Required 3 Required 4 Required 5 Prepare an absorption costing income statement for the quarter ended June 30' Cost of goods sold: 43.30: 0 252.1959 Beginning inventory Purchases Goods available for sale 305,995 Ending inventory 32,403 a 33,595 Gross margin (31995} Selling and administrative expenses: Commissions Rent Depreciatio n Other expenses Note payable ?D.5i19 Net operating income {1081604} Interest expense 230 o Net income {1031834} 1 ' 6 Answer is not complete. Complete this question by entering your answers in the labs below. 30 : .- Required 1 Required 2 Required 3 Required 4 Required 5 points Prepare a balance sheet as of June 30. Assets Current assets: Cash 0 5 0.200 9 Accounts receivable a 22,800 0 Inventory 0 43.800 9 Building and equipmentnet a 123,400 a Total current assets 203,200 Building and equipmentnet a Total assets 35 203,200 Liabilities and Stockholders' Equity Accounts payable 0 $ 26,1?5 a Stockholders equity: Common stock 0 55 150,000 0 Retained eamings 0 2?,025 a 'l ??.025 Total liabilities and stockholders equity 5 203,200 1 The following data relate to the operations of Shilowr Company, a wholesale distributor of consumer goods: Current assets as of March 31: 30 Cash :3 8,299 points Accounts receivable $ 22,399 Inventory $ 43,399 Building and equipment, net $ 128,499 Accounts payable 5 25,175 Common stock $ 150,099 Retained earnings $ 27,025 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) $ 5?,099 April 5 33,699 May 5 28,099 June $ 163,099 July $ 54,699 c. Sales are 60%for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. d. Each month's ending inventory should equal 80% ofthe following month's budgeted cost of goods sold. e. Onehalf ofa 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 31 are the result of March purchases of inventory. 1'. Monthly expenses are as follows: commissions, 12% of sales; rent, $3,000 per month; other expenses (excluding depreciation). 6% of sales. Assume that these expenses are paid monthly. Depreciation is $963 per month (includes depreciation on new assets). g. Equipment costing $2.200 will be purchased 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 in increments of $1000 at the beginning of each month, up to a total loan balance of 5320000. The interest rate on these loans is 1% per month and for simpliCIty we Will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end ofthe quarter. Required: Using the preceding data: 1 Complete the schedule of expected cash collections