1 pints The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 61,000 $ 77,000 $ 82,000 $ 107,000 $ 58,000 $ 8,600 $ 24,400 $ 46,200 $ 118,800 $ 27,675 $ 150,000 $ 20,325 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% of the following month's budgeted cost of goods sold. e. One-half of a 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. f. Monthly expenses are as follows: commissions, 12% of sales; rent, $3,400 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthlv. Depreciation is $891 per month (includes depreciation on new assets).

Prepare an absorption costing income statement for the quarter ended June 30. The following data relate to the operations of Shillow Company, a wholesale distributor of corisumer goods: a. The gross margin is 25% of sales. b. Actuol and budgeted sales data: c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts recelvable at March 31 are a result of March ciedit sales. d. Each month's ending imventory should equal 80% of the following month's budgeted cost of goods sold. e. One half of a month's irventory 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. t. Monthly expenses are as follows: commissions, 12% of sales, rent $3,400 per month; other expenses (excluding depreciation), 6% of sales. Assume that these experses are paid monthiv. Deoreclation is $891 per month fincludes denreciation on new assets). Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) \begin{tabular}{|c|c|c|c|c|} \hline Required 1 & Required 2 & Required 3 & Required 4 & Required 5 \\ \hline \end{tabular} Prepare a balance sheet as of June 30 . 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 Answer is not complete. Complete this question by entering your answers in the tabs below. Complete the schedule of expected cash collections. Answer is not complete. Complete this question by entering your answers in the tabs below