Following is selected information relating to the operations of Shilow Company, a wholesale distributor Current assets as of March 31 Cash $ 36,000 Accounts receivable 48,000 Inventory 86,400 Plant and equipment, net 216,000 Accounts payable 70,400 Capital shares 290,000 Retained earnings 26,000 Gross margin is 25 of sales Actual and budgeted sales data are as follows March (actual) $ 120,000 April 144,000 May 156,000 June 174,000 July 118,000 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, $8,000 per month other expenses (excluding depreciation), 6 of sales Assume that these expenses are paid monthly Depreciation is $2,300 per month (includes depreciation on new assets) Equipment costing $2,900 will be purchased for cash in April The company must maintain a minimum cash balance of $9,000 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 for ( April, May, June, Quarter) 2 Prepare a schedule of inventory purchases and a schedule of expected cash disbursements for purchases for (April, May, June, Quarter) 3 Prepare a schedule of expected cash disbursements for operating expenses for(April, May, June, Quarter) 4 Prepare a cash budget by month and for the quarter in total For ( April, May, June, Quarter) (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

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Following is selected information relating to the operations of Shilow Company, a wholesale distributor: Current assets as of March 31: Cash $ 36,000 Accounts receivable

Following is selected information relating to the operations of Shilow Company, a wholesale distributor:


Current assets as of March 31:
Cash	$	36,000
Accounts receivable		48,000
Inventory		86,400
Plant and equipment, net		216,000
Accounts payable		70,400
Capital shares		290,000
Retained earnings		26,000

Gross margin is 25% of sales.
Actual and budgeted sales data are as follows:


March (actual)	$	120,000
April		144,000
May		156,000
June		174,000
July		118,000

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, $8,000 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $2,300 per month (includes depreciation on new assets).
Equipment costing $2,900 will be purchased for cash in April.
The company must maintain a minimum cash balance of $9,000. 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 for ( April, May, June, Quarter)

2. Prepare a schedule of inventory purchases and a schedule of expected cash disbursements for purchases for (April, May, June, Quarter).

3. Prepare a schedule of expected cash disbursements for operating expenses for(April, May, June, Quarter)

4. Prepare a cash budget by month and for the quarter in total For ( April, May, June, Quarter). (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.