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 $ 48,000 58,000 104,400 249,000 88,400 340,000 31,000 a. Gross margin is 25% of sales b. Actual and budgeted sales data are as follows March (actual) $145,000 174,000 186,000 204,000 143,000 ril June July Required Using the preceding data 1. Prepare a schedule of expected cash collections SHILOW COMPANY Schedule of Expected Cash Collections April May June Quarter Cash sales Credit sales Total cash collections $ 104,400111,600 $ 122,400 338,400 202,000 $ 162,400$ 181,200 $ 196,800 540,400 569,600 58,000 74,400 2. Prepare a schedule of inventory purchases and a schedule of expected cash disbursements for purchases SHILOW COMPANY Schedule of Inventory Purchases April May June Quarter udgeted cost of goods sold Add: Desired ending inventory Total needs $130,500 139,500 153,000 85,800 238,800 122,400 423,000 85,800 508,800 104,400 $ 137,700150,300 116,400 404,400 111.600 242,100 104,400 122,400 261,900 111.600 educt: Beginning inventory equired inventory purchases SHILOW COMPANY Schedule of Expected Cash Disbursements for Purchases April $ 88,400 May June Quarter March purchases April purchases May purchases June purchases Total cash disbursements $ 88,400 137,700 150,300 58,200 $ 157,250$ 144,000 $ 133,350 $ 434,600 68,850 68,850 75,150 75,150 58,200 3. Prepare a schedule of expected cash disbursements for operating expenses SHILOW COMPANY Schedule of Expected Cash Disbursements for Operating Expenses April May June Quarter $ 20,880 22,32024,48067,680 31,500 33,840 $ 41,820 $ 43,980$ 47,220 $ 133,020 alaries and wageS ent 10,500 10,500 10,500 10,440 Other expenses Total cash disbursements 11,160 12,240 4. Prepare a cash budget by month and for the quarter in total. (Any "Repayments" and "Interest" should be indicated by a minus sign.) SHILOW COMPANY Cash Budget April May June Quarter Cash balance, beginning Add: Collections from sales Total cash available Deduct: Disbursements $ 48,00012,930 ,1048,000 540,400 588,400 162,400 181,200 196,800 210,400 194,130 208,950 157,250 41,820 3,400 144,000 Purchases of inventory Operating expenses Purchase of equipment 133,350 434,600 133,020 3,400 43,980 47,220 Total disbursements Excess (deficiency) of cash Financing. 202,470 7,930 187,980 180,570 571,020 6,150 28,380 17,380 Borrowings Repayments Interest 5,000 6,000 11,000 0(11,000(11,000) (270) (270) Total financing Cash balance, ending (270) $12,930 12,10 17,110 17,110 5,000 6,00011,270) 5. Prepare an income statement for the quarter ended June 30 SHILOW COMPANY Income Statement For the Quarter Ended June 30 $ 564,000 Deduct: Cost of goods sold Goods available for sale Gross margin Deduct: Operating expenses 141,000 Salaries and wages Rent Other expenses Depreciation 67,680 31,500 33,840 8,400 141,420 et operating income educt: Interest expense et income 270 6. Prepare a balance sheet as of June 30. SHILOW COMPANY Balance Sheet as of June 30 Assets Current assets: Total current assets Total assets Liabilities and Shareholders' Equity Current liabilities: Stockholders' equity Total shareholders' equity Total liabilities and shareholders' equity