L . The following data relate to the aperations of Shilow Company, a wholesale distributor of consumer goods Current assets as of March 31: Cash Accounts receivable. Inwentary Surcing and woment .... Accounts payable.......... Common stock Heard earnings $8.000 $20,000 $35,000 $120.000 $21.750 $150.000 $12,250 a. The gross margin is 25% of sales. Actual and budgeted sales data March (actus). April ..... May... Aine Muly $50.000 $60,000 $72,000 $90,000 $ $48.000 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 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 secounts payable a March 31 are the result of March purchases of inventory f. Monthly expenses are as follows: comissions, 125 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. h. Management would like to maintain a minimum cash balance of at least 34,000 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 the interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest the end of the quarter Required Using the preceding data: 1. Complete the following schedule: Schedule of Expected Cash Collections May June Quertes Cash sales Credit sales Total collections April $36.000 20,000 $56,00 2 Complete the following Merchandise Purchases Budget June Quarter Budgeted cost of goods sold ....... Add desired ending inventory.... Total needs Less beginning inventory ...... Required purchases April May $45,000 $54,000 43200 88.200 36 000 $52,200 "For April sales: $60,000 sales x 75% cost ratio $45.000 554.000 x 80543.200 June Schedule of Expected Cash Disbursements--Merchandise Purchases April May March purchases $21.750 April purchases 26,100 $26,100 May purchases June purchases Total disbursements 547850 Quarter $21.750 52.200 I 3. Complete the following cash budget Cash Budget May June Quarter April $9,000 56.000 64,000 Beginning cash balance Add cash collections Total cash available Less cash bursements: For Inventory For expenses For equipment Total cash disbursements Excess deficiency of cash Financing 47,850 13.300 1.500 52.650 1,350 4. Using Schedule 9 as your guide, prepare an absorption costing income statement for the quarter ended June 30 9 Prepare a balance sheet as of June 30 What is your question ? I want to know how to to get the answer for each question. Can you give me the detail explanation Specially, I hope to know how to get the liabilities and equity in the balance sheet step by step in detail. Thank you so much.4
