Following is selected information relating to the operations of Shilow Company, a wholesale distributor: Current assets as of March 31: Cash Accounts receivable Inventory Plant and equipment, net Accounts payable Capital shares Retained earnings $ 9,000 22,000 39,600 126,000 23,600 160,000 13,000 a. Gross margin is 25% of sales. b. Actual and budgeted sales data are as follows: March (actual) April May June July $55,000 66,000 78,000 96,000 53,000 C. 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. d. At the end of each month, inventory is to be on hand equal to 80% of the following month's sales needs, stated at cost. e. One-half of a month's 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. f. Monthly expenses are as follows: salaries and wages, 12% of sales; rent, $3,000 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $1,000 per month (includes depreciation on new assets). g. Equipment costing $1,600 will be purchased for cash in April. h. The company must maintain a minimum cash balance of $5,000. 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). Prepare a schedule of expected cash disbursements for operating expenses. SHILOW COMPANY Schedule of Expected Cash Disbursements for Operating Expenses April May June Quarter Total cash disbursements $ 0 $ 0 $ 0 $ 0 Prepare an income statement for the quarter ended June 30. SHILOW COMPANY Income Statement For the Quarter Ended June 30 Deduct: Cost of goods sold: Goods available for sale 0 0 Deduct: Operating expenses: 0