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Father & Sons is a small wholesale distributor of consumer goods. The company generates a gross margin shown in the blue table. The percent of

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Father & Sons is a small wholesale distributor of consumer goods. The company generates a gross margin shown in the blue table. The percent of cash sales is shown in the blue table; the remainder is sold on account and is collected one month later. Accounts receivable on June 30, 2014 are the result of June credit sales. Actual and budgeted sales for the period were as follows: Click here to create your "Blue Table." $45,000 August September October Gross Margin Cash Sales Ending Inventory Inventory purchases paid in! 23% 26 35 48% cash Other Expenses $48,000 The company plans for each month's ending inventory to be the blue table percentage of the following month's budgeted cost of goods sold. Inventory cash purchases are shown in the blue table; the rest is paid for in the following month. The accounts payable on June 30 are the result of June purchases of inventory. All monthly expenses were paid monthly. Monthly expenses included: commissions, $9,000; rent, $1,200; other expenses (excluding depreciation], are reflected in the blue able as a percent of sales. Depreciation is $1,300 for the quarter and includes depreciation on new assets acquired during the quarter. The assets acquired for cash during the quarter included equipment of $2,100 in July and $3,000 in August. The company wishes to maintain a minimum cash balance of $3,000 at the end of each month. The company has a financing facility that allows the company to borrow in increments of $1,000 at the beginning of each month from a local bank, up to a total loan balance of 530,000. The interest rate on these loans is 1.5% per month, and interest is not compounded. The company, when able, repays the loan plus accumulated interest at the end of the quarter. this table. Complete the assignments on the "Display Budget Additional information: Current assets as of June 30: Accounts receivable nventory Buildings and equipment Accounts payable Capital stock Retained earnings $29.250 $7,100 $102,550 $99,000 $21,500 Required: Using the data above, for quarter ending september 2014, prepare the following a. The schedule of the expected cash collections b. The merchandise purchases budget: c. The schedule of expected cash disbursements- merchandise purchases d.schedule of expected cash disbursement-Selling and administrative expenses e. The cash budget f. An absorption costing income statement, for the quarter ending eptember 2014 g. A balance sheet as of September 30, 2014

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