Current assets as of March $31$:

Cash $ $7,400$

Accounts receivable $ $19,600$

Inventory $ $39,000$

Building and equipment, net $ $126,000$

Accounts payable $ $23,175$

Common stock $ $150,000$

Retained earnings $ $18,825$

The gross margin is $25\%$ of sales.

Actual and budgeted sales data:

March $($actual$)$ $ $49,000$

April $ $65,000$

May $ $70,000$

June $ $95,000$

July $ $46,000$

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.

Each month$$s ending inventory should equal $80\%$ of the following month$$s budgeted cost of goods sold.

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, $$2,200$ per month; other expenses $($excluding depreciation$),6\%$ of sales. Assume these expenses are paid monthly. Depreciation is $$945$ per month $($includes depreciation on new assets$).$

Equipment costing $$1,400$ will be purchased for cash in April.

Management would like to maintain a minimum cash balance of at least $$4,000$ at the end of each month. The company has an agreement with a local bank allowing it to borrow in increments of $$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 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.Prepare a balance sheet as of June $30.$Prepare a balance sheet as of June $30.$

$\backslash$table$[[$Shilow Company$],[$Balance Sheet$],[$June $30],[$Assets$],[$Current assets:$],[$Cash$,,$$$,6,040],[,,38,000],[,,27,600],[,,124,565],[,,,],[$Total current assets,,$196,205],[$Accounts payable$],[$Total assets,,$$,196,205],[$Liabilities and Stockholders' Equity$],[$Accounts payable,,$],[,,,],[$Stockholders$\text{'}$ equity.$],[,,,],[,,,],[,,,],[,,,0],[$Total liabilities and stockholders' equity,,$$,0]]$