PROBLEM 8-29 Completing a Master Budget LOB-2, L08-4, LOB-7, L08-.8, L08-9. L08-10 The following data relate to the operations of Shilow Company. a wholesale distributor of consumer goods: Current assets as of March 31 : Accounts receivable Inventory Building and equipment. net . Accounts payable Common stock Retained eamings a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual).. June . July $8,000 S20.ooo S36,ooo S120.ooo S21,750 . $150,000 S12,250 $50,000 . 90.000 . $72,000 90,000 $48,000 c. Sales are 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 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 acvounts payable at March 31 are the result of March purchases of inventory.