Following is selected information relating to the operations of Shilow Company, a wholesale distributor: Page 413 Current assets as of March 31: Cash $ 8,000 Accounts receivable 20,000 Inventory 36,000 Plant and equipment, net 120,000 Accounts payable 21,750 Capital shares 150,000 Retained earnings 12,250 Gross margin is 25% of sales. Actual and budgeted sales data are as follows: March (actual) $50,000 April 60,000 May 72,000 June 90,000 July 48,000 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, $2,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (includes depreciation on new assets). Equipment costing $1,500 will be purchased for cash in April. The company must maintain a minimum cash balance of $4,000. 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: Prepare a schedule of expected cash collections. Prepare a schedule of inventory purchases and a schedule of expected cash disbursements for purchases. Prepare a schedule of expected cash disbursements for operating expenses. Prepare a cash budget by month and for the quarter in total. Prepare an income statement for the quarter ended June 30. (Use the functional format in preparing your income statement, as shown in Schedule 9.) Prepare a balance sheet as of June 30