Check my work 1 The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods 30 poli Correntes of March 31 Cuah cointe receivable Tutory tid Monts payabi Com teening $ 8,490 23.00 45,000 $2,600 26.125 150.00 113.45 Burs 3. The gross marginis 25% of sales. b. Actual and budgeted sales data marchetul Hay June July 339,000 115,000 1,600 105,000 $35.000 Sales are 60% for cash and 40% on Credit Credit sales are collected in the tranth folowing sale. The accounts receivable at March 31 are a result of March creo Sales Each month's ending invertory should equal 80% of the following month's budgeted cost of goods sola e One-half of a month's inventory purchases is paid for in the month of ourchase the other hafinid for in the following month. The accounts payable at Mach 3 are the result of Moich purchases of inventory Monthly expenses are as follows commission 12 of sont 53.200 per month other expenses excluding depreciation), 6% of sales Assume that these expenses are paid monthy Depreciation is 5927 per month includes depreciation on now assets Equipment costing $2.400 will be purchased for cash in Art h Management would be to maintain a minim cash balance of at least 54.000 the end of each month. The company has total loan balance of $20,000. The interest rate on these loans is per mom and for simplicity we will assume that merest is not agreement with a local bank that slows the company to borrow in increments of $1.000 at the beginning of each month, up to combounded. The comcar would as far as it is able roy the loan lucumulated rest at the end of the cute 90 Dom 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 conting income statement for the quarter ended June 30. 5. Prepare a balance sheet as of June 30. ol Complete this question by entering your answers in the tabs below. Resuired Required Required Required) Required Complete the scheme of expected can collection Schedule of Expected Cath Collections April May June Cash 145.000 Credits 23.000 Totalcone 100 WIFIUTELE UU. Complete this question by entering your answers in the tabs below. 10 points eBook Print References 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 May June Quarter Budgeted cost of goods sold $ 56,250 $60,000 Add desired ending merchandise inventory 48,000 Total needs 104,250 Less beginning merchandise inventory 45,000 Required purchases $ 59,250 Budgeted cost of goods sold for April - $75,000 sales75% = $56,250, Add desired ending inventory for April = $60,000 * 80% = $48,000 Schedule of Expected Cash Disbursements-Merchandise Purchases April May June Quarter March purchases $ 26,925 $ 26,925 April purchases 29,625 29,625 59.250 May purchases June purchases Total disbursements Complete this question by entering your answers in the tabs below. 10 points B00 Plantes Required 1 Reouired 2 Required Required 4 Required Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign) Shilow Company Cash Budget April May June Quarter Deginning cash bolante $ 8.400 Add collections from customers 68.000 Total thavalable 77.000 Less cash disbursements For inventory 0.550 For expenses 15.700 For equipment 2.400 Total cash disbursements 75.650 Excess deficiency of cash valable over dinbursements 1350 Finanong Borrowings Repayments Interest Total financing Ending can be Required 1 Required 2 Required 3 Required 4 Required 5 10 points Prepare an absorption costing income statement for the quarter ended June 30. Shilow Company Income Statement For the Quarter Ended June 30 cBook Cost of goods sold Prien References Selling and administrative expenses Required 1 Required 2 Required 3 Required 4 Required Prepare a balance sheet as of June 30. Shilow Company Balance Sheet June 30 Assets Current assets Total current assets Total assets Liabilities and Stockholders' Equity Stockholders' equity: Total liabilities and stockholders' equity U 1 1 The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: 10 points Current assets as of March 31 Cash Accounts receivable Inventory Building and equipment, net Accounts payable Connon stock Retained earnings $ 8,400 23.600 545,000 $ 123,600 $ 26,925 $ 150.000 $ 23,675 a. The gross margin is 25% of sales. b. Actual and budgeted soles data: Prim References March (actual) April $ 59,000 75.000 $10,000 $ 105,000 June July Sales are 60% for cash and 40% on credit Credit sales are collected in the month following sele. The accounts receivable et March 31 are a result of March credits d. Each month's ending inventory should equal BOX 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 Monthly expenses are as follows commissions, 12% of sales, rent, $3,200 per month other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly Depreciation is $927 per month (includes depreciation on new assets) g Equipment costing $2.400 will be purchased for cash in April 11. Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has on 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. 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. Pont Reference Required: Required 2 Required) Required Required 5 Complete the schedule of expected cash collections Schedule of Expected Cash Collections April May June Quarter Cash sales $ 45.000 Credit sales 23.600 Total collections $ 68,600 Required 2 > 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. Quarter Merchandise Purchases Budget April May June Budgeted cost of goods sold $56,250 $60,000 Add desired ending merchandise inventory 48,000 Total needs 104,250 Less beginning merchandise inventory 45,000 Required purchases Budgeted cost of goods sold for April $75,000 sales75% $56,250. Add desired ending inventory for April $60,000 80% $48,000. Schedule of Expected Cash Disbursements---Merchandise Purchases April May June March purchases $ 26,925 April purchases 29,625 29,625 May purchases June purchases Total disbursements Quarter $ 26,925 59,250 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.) June Quarter Shilow Company Cash Budget April May $ 8,400 68,600 77,000 Beginning cash balance Add collections from customers Total cash available Less cash disbursements: For inventory For expenses For equipment Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing 56,550 16,700 2.400 75,650 1,350 Ending canh halana Required 1 Required 2 Required 3 Radquired 4 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: ces Selling and administrative expenses: points Shilow Company Balance Sheet June 30 Assets eBook Current assets Print References Total current assets Total assets Liabilities and Stockholders' Equity Stockholders' equity Total liabilities and stockholders' equity