4 3:33 points eBook Print References The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods Current assets as of March 31: Cash $ 8,200 Accounts receivable $ 22,000 Inventory $ 43,000 Building and equipment, net $ 128,400 $ 26,175 Accounts payable Common stock $ 150,000 Retained earnings $ 27,025 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May $57,000 $.73,000 $ 78,000 $ 101,000 June July $ 54,000 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. 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. t 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 $4,000 at the end of each month. The company has 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 rest rate on these bans is its 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. Required: Using the preceding data: ellook 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. References 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 Credit sales 22,800 Total collections $ 66,600 3:33 pones Required 2 > 3.33 points eBook Print References Complete this question by entering your answers in the tabs below. 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. Merchandise Purchases Budget April June Quarter Budgeted cost of goods sold $ 54.750 $ Add desired ending merchandise inventory Total needs 46,800 101,550 43,800 Less beginning merchandise inventory Required purchases $ 57,750 $ Budgeted cost of goods sold for April-$73,000 sales 75%-$54,750 Add desired ending inventory for April = $58,500 80% = $46,000 March purchases April purchases May purchases June purchases Total disbursements May 58,500 58,500 0 58,500 $ 0 $ Schedule of Expected Cash Disbursements-Merchandise Purchases April May June $ 26,175 28.875 28,875 55,050 $ 28,875 S $ 0 0 Quarter S 26.175 57,750 83.925 13.33 points eBook Print References Required 1 Required 2 Required 3 Required 4 Required 5 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Shilow Company Cash Budget April May June Quarter Beginning cash balance $ 8.200 Add collections from customers 66,600 74,800 Total cash available Less cash disbursements For inventory 55,050 For expenses 16.140 For equipment 2.200 Total cash disbursements 73,390 Excess (deficiency) of cash available over disbursements 1,410 Financing Borrowings Repayments Interest Total financing Ending cash balance 0 1,410 $ 0 0 0 0 $ 0 0 0 0 3.33 points eBook Print References Required 1. Required 2 Required 3 Required 41 Required 5 Prepare an absorption costing income statement for the quarter ended June 30. Shilow Company Income Statement For the Quarter Ended June 30 Cost of goods sold Selling and administrative expenses 0 3.33 points eBook Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a balance sheet as of June 30. Shillow Company Balance Sheet1 June 30 Assets Current assets Total current assets Total assets 0 Liabilities and Stockholders' Equity Stockholders' equity Total abilities and stockholders equity Required 4 $ S 0 D