I did some of the work but some parts are incorrect or unfinished.

The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 8,500 Accounts receivable $ 24,000 Inventory $ 45,600 Building and equipment, net $121,200 Accounts payable $ 27,300 Common stock $150,000 Retained earnings $ 22,000 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 60,000 $ 76,000 $ 81,000 $106,000 $ 57,000 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. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold. e. One-half of a month's Inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory t. Monthly expenses are as follows: commissions, 12% of sales, rent, $3,300 per month other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $909 per month (includes depreciation on new assets). 9. Equipment costing $2,500 will be purchased for cash in April, h Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Required: Using the preceding data: 1. Complete the schedule of expected cash collections. 2. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. 3. Complete the cash budget. 4. Prepare an absorption costing income statement for the quarter ended June 30. 5. Prepare a balance sheet as of June 30. Required Required Required Required Required 1 2 3 5 Complete the schedule of expected cash collections. Schedule of Expected Cash Collections April May June Quarter $ Cash sales S S S 45,600 48,600 63,600 157,800 Credit sales 24,000 30,400 32.400 86,800 Total $ S S S collections 69,600 79.000 96.000 244,600 Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Merchandise Purchases Budget April May June Quarter $ S $ $ Budgeted cost of goods sold 57,000 60,750 79,500 197,250 Add desired ending merchandise inventory 48,600 63,600 34,200 34,200 Total needs 105,600 124,350 113,700 231,450 Less beginning merchandise inventory 45,600 48,600 63,600 45,600 $ S $ $ Required purchases 60.000 75,750 50 100 185,850 Budgeted cost of goods sold for April = $76,000 sales x 75% = $57,000. Add desired ending inventory for April = $60,750 x 80% = $48.600. Schedule of Expected Cash Disbursements-Merchandise Purchases April May June Quarter $ March purchases $ 27,300 27,300 April purchases 30,000 30,000 60,000 May purchases 37,875 37,875 75,750 June purchases 25,050 25,050 $ S $ Total disbursements $ 57,300 67,875 62,925 188,100 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Shilow Company Cash Budget April May June Quarter Beginning cash balance $ 8,500 $ 4,320 $ 4,565 $ 8,500 Add collections from 69,600 79,000 96,000 244,600 customers Total cash available 78,100 83.320 100.565 253,100 Less cash disbursements: For inventory 57,300 67,875 62.925 188,100 For expenses 16,980 17.880/ 22,380 57,240 For equipment 2.500 Total cash 76.780 85.755 disbursements 85,305 245,340 Excess (deficiency) of cash available over 1,320 (2.435) 15,260 7,760 disbursements Financing: Borrowings 3,000 7,000 10,000 Repayments (10.000) (10,000) Interest (130) (130) Total financing 3,000 7.000 (10.130) (130) Ending cash balance $ 4,320 $ 4,565 $ 5.130 $ 7,630 Prepare an absorption costing income statement for the quarter ended June 30. Shilow Company Income Statement For the Quarter Ended June 30 S Sales 263,000 Cost of goods sold 0 263,000 Selling and administrative expenses: 0 263,000 263,000 Prepare a balance sheet as of June 30. Shilow Company Balance Sheet June 30 Assets Current assets: Cash Accounts receivable Inventory S 5,130 42,400 34,200 Total current assets 81,730 Building and equipment-net 120,973 S Total assets 202.703 Liabilities and Stockholders' Equity Accounts payable S 25,050 Stockholders' equity S 150,000 27,653 Retained earnings Total liabilities and stockholders' equity 177,653 S 202.703