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

Current assets as of March 31:
Cash	$	32,000
Accounts receivable		44,000
Inventory		79,200
Plant and equipment, net		202,000
Accounts payable		63,200
Capital shares		270,000
Retained earnings		24,000

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

March (actual)	$	110,000
April		132,000
May		144,000
June		162,000
July		108,000

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 months sales needs, stated at cost.
e.	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.
f.	Monthly expenses are as follows: salaries and wages, 12% of sales; rent, $7,000 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $2,100 per month (includes depreciation on new assets).
g.	Equipment costing $2,700 will be purchased for cash in April.
h.	The company must maintain a minimum cash balance of $8,000. 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" 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.

Required: Using the preceding data: 1. Prepare a schedule of expected cash collections. 5. Prepare an income statement for the quarter ended June 30. che Cash sales Credit sales Total cash collections SHILOW COMPANY Schedule of Expected Cash Collections April May June Quarter 1$ 79,200 $ 86.400 $ 97,200 $ 262,800 25.200 5 7,600 64,800147,600 $ 104,400 $144.000 $ 162,000 410,400 SHILOW COMPANY Income Statement For the Quarter Ended June 30 Deduct: Cost of goods sold: 2. Prepare a schedule of inventory purchases and a schedule of expected cash disbursements for purchases Goods available for sale Actual cost of goods sold Add: Desired ending inventory Total needs Deduct: Beginning inventory Actual purchase SHILOW COMPANY Schedule of Inventory Purchases April May $ 99,000 $ 108,000 86.400 97.200 185,4001 205,2001 79.2007 82.2007 $106.2005 123.000 June Quarter $ 121,5001 328,5 64,800 186,3001 262005769 97.2007 258,6 $ 89,100 $ 318,3 Deduct: Operating expenses: SHILOW COMPANY Schedule of Expected Cash Disbursements for Purchases April May June Quarter March purchases S 63.200 563.200 April purchases 65 9001 6 5.900 131,800 May purchases 73,775 73.775 147,550 June purchases 60.950160,950 Total cash disbursements $ 129,100 $ 139,675 S 134.725 $ 403,500 6. Prepare a balance sheet as of June 30. 3. Prepare a schedule of expected cash disbursements for operating expenses SHILOW COMPANY Balance Sheet as of June 30 Assets SHILOW COMPANY Schedule of Expected Cash Disbursements for Operating Expenses April May June Quarter Salaries and wages $ 15.840 $ 17280 $ 19,4401 $ 52.580 Rent 7.000 7.000 7.000 21.000 Other expenses 7.9201 8,6401 9,7201 6,480 Total cash disbursements S 30.760 $ 32,920 $ 36,160 $ 80,040 Current assets: 4. Prepare a cash budget by month and for the quarter in total. (Any "Repayments and interest should be indicated by a minus sign.) Total current assets SHILOW COMPANY Cash Budget April May June Quarter Total assets Liabilities and Shareholders' Equity Cash balance, beginning Add: Collections from sales Total cash available Deduct: Disbursements Purchases of Inventory Operating expenses Purchase of equipment Current liabilities: 2,700 Stockholders' equity: Total disbursements Excess deficiency of cash Financing HHH Total shareholders' equity Total liabilities and shareholders' equity Total financing