11 The following data relote to the operations of Shilow Company, a wholesale distributor of consumer goods: a. The gross margin is 25 of sales. b. Actual and budgoted sales dota: c. Sales are 60x for cosh and 40x on creds. Credit sales are collected in the month following sale. The accounts recewable of March 31 are a resuit of March credit sales. d. Eoch month's ending imemary should equal 80% of the following month's budgeted cost of goods sold. e. One half of a month's invemory purchases is paid for in the month of purchase; the other haif is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventary 1. Monthily expenses are as follows commissions, 12% of sales, rent, 53.200 per month; other expenses (excluding depreciation), 6% of shes. Assume that these expenses are paid monthy. Depreciation is $927 per month oncludes depreciation on new assets) 9. Equipment costing $2.400 will be purchosed for cash in April. h. Mansgement would tive to maintain a minimum cash balance of at least $4.000 at the end of esch month. The company has an ogreement with o local bark that alows the company to borrow in increments of $1.000 at the beginning of each month, up to . total loan balance of $20.000 The inteeestrate on these loans is 15 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 quartec. Aequired: Using the preceding data: 11 Prepare a balance sheet as of June 30. 10 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Required 1 Required 2 Required 3a Required 4 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) 11 The following data relote to the operations of Shilow Company, a wholesale distributor of consumer goods: a. The gross margin is 25 of sales. b. Actual and budgoted sales dota: c. Sales are 60x for cosh and 40x on creds. Credit sales are collected in the month following sale. The accounts recewable of March 31 are a resuit of March credit sales. d. Eoch month's ending imemary should equal 80% of the following month's budgeted cost of goods sold. e. One half of a month's invemory purchases is paid for in the month of purchase; the other haif is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventary 1. Monthily expenses are as follows commissions, 12% of sales, rent, 53.200 per month; other expenses (excluding depreciation), 6% of shes. Assume that these expenses are paid monthy. Depreciation is $927 per month oncludes depreciation on new assets) 9. Equipment costing $2.400 will be purchosed for cash in April. h. Mansgement would tive to maintain a minimum cash balance of at least $4.000 at the end of esch month. The company has an ogreement with o local bark that alows the company to borrow in increments of $1.000 at the beginning of each month, up to . total loan balance of $20.000 The inteeestrate on these loans is 15 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 quartec. Aequired: Using the preceding data: 11 Prepare a balance sheet as of June 30. 10 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Required 1 Required 2 Required 3a Required 4 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.)
