1) Prepare schedule of expected cash flows

2) Prepare Merchandise Purchases Budget

3) Prepare schedule of expected cash disbursements - merch purchases

4) Prepare schedule of expected cash disbursements - selling and admi expenses

5) Prepare cash budget

6) Prepare an abosrption costing income statement for the quarter ended June 30

7) Prepare balance sheet as of June 30

The following data relate to the operations of Medico Company, a wholesale distributor of consumer goods: As of March 31 (USD): Cash 12,000 Accounts payable 15,000 Accounts receivable 16,500 Capital stock 40,000 Inventory 9,800 Retained earnings 90,813 Buildings and equipment (net) 115,000 Assumptions a) Gross margin is of sales b) Actual and budgeted sales data: 55% USD March (actual) 65,000 June 68,000 April 66,000 July 69,000 May 67,000 c) Sales are for cash and on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are the result of March credit sales. Break down between Cash & Credit sales is as follow! Cash Sale 45% Credit Sales 55% Each month's ending inventory should equal 15% of the following month's budgeted cost of goods sold. 65% of a month's inventory purchases are paid for in the month of purchase; the remainder is paid for in the following month | The accounts payable at March 31 are a result of March purchases of inventory. Monthly expenses are as follows: salaries and wages, $10,500 per month; rent, $3,500 per month; other expenses (excluding depreciation), 10% of sales. Assume that these expenses are paid monthly. Depreciation is $1,000 per month (includes depreciation on new assets) Equipment costing $9,000 will be purchased for cash in April The company must maintain a minimum cash balance of $5,000. 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 principals figure interest on whole months (1/12, 2/12, and so forth)