1. Prepare a schedule of expected cash collections.

2. Prepare a schedule of inventory purchases and a schedule of expected cash disbursements for purchases.

3. Prepare a schedule of expected cash disbursements for operating expenses. 4. Prepare a cash budget by month and for the quarter in total.

5. Prepare an income statement for the quarter ended June 30.

6. Prepare a balance sheet as of June 30.

Following is selected information relating to the operations of Shilow Company, a wholesale distributor: Current assets as of March 31: Cash Accounts receivable Inventory Plant and equipment, net Accounts payable Capital shares Retained earnings $ 38,000 50,000 90,000 223,000 74,000 300,000 27,000 a. Gross margin is 25% of sales. b. Actual and budgeted sales data are as follows: March (actual) April May June July $125,000 150,000 162,000 180,000 123,000 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. At the end of each month, inventory is to be on hand equal to 80% of the following month's sales needs, stated at cost. e. One-half of a month's inventory purchases are paid for in the month of purchase; the other half are paid for in the following month. The accounts payable at March 31 are a result of March purchases of inventory. f. Monthly expenses are as follows: salaries and wages, 12% sales; rent, $8,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $2,400 per month (includes depreciation on new assets). g. Equipment costing $3,000 will be purchased for cash in April. h. The company must maintain a minimum cash balance of $10,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month; borrowing must be in multiples of $1,000. The annual interest rate is 12%. Interest is paid only at the time of repayment of principal; figure interest on whole months (1/12, 2/12, and so forth)