Following is selected information relating to the operations of Shilow Company, a wholesale distributor: Current assets as of March 31: Cash $ 14,000 Accounts receivable 26,000 Inventory 46,800 Plant and equipment, net 139,000 Accounts payable 30,800 Capital shares 180,000 Retained earnings 15,000 Gross margin is 25% of sales. Actual and budgeted sales data are as follows: March (actual) $ 65,000 April 78,000 May 90,000 June 108,000 July 63,000 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. At the end of each month, inventory is to be on hand equal to 80% of the following months sales needs, stated at cost. One-half of a months inventory purchases are paid for in the month of purchase; the other half are paid for in the following month. The accounts payable at March 31 are a result of March purchases of inventory. Monthly expenses are as follows: salaries and wages, 12% of sales; rent, $4,000 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $1,200 per month (includes depreciation on new assets). Equipment costing $1,800 will be purchased for cash in April. The company must maintain a minimum cash balance of $7,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month; borrowing must be in multiples of $1,000. The annual interest rate is 12%. Interest is paid only at the time of repayment of principal; figure interest on whole months (1/12, 2/12, and so forth). Required: Using the preceding data: 1. Prepare a schedule of expected cash collections. 2. Prepare a schedule of inventory purchases and a schedule of expected cash disbursements for purchases. 3. Prepare a schedule of expected cash disbursements for operating expenses. 4. Prepare a cash budget by month and for the quarter in total. (Any "Repayments" and "Interest" should be indicated by a minus sign.) 5. Prepare an income statement for the quarter ended June 30. 6. Prepare a balance sheet as of June 30.