Miken Company: The following data relate to the operations of Miken Comapny, a distributor of consumer goods. Accounts as of March 31: Cash $8,000 A/R $20,000 Inventory $36,000 Building & Equip (net) $120,000 A/P $21,750 Capital stock $150,000 Retained Earnings $12,250 A. The gross margin is 25% of sales B. Actual and budgeted sales data: March (actual) $50,000 April $60,000 May $72,000 June $90,000 July $48,000 C. Sales are 60% cash and 40% credit. Credit sales are collected in the month following sale. The A/R 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 COGS 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 A/P at March 31 are the result of March purchases of inventory F. Monthly expenses are as follows: commissions, 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. G. Equipment costing $1,500 will be purchased for cash in April H. 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 the month; borrowing must be in multiples of $1,000. The annual interest rate is 12%. Interst is paid only at the time of repayment of principal. (figure interest in whole months 1/12, 3/12, etc.) Using this information complete the following schedules: 1. Schedules of expected cash collections 2. Merchandise purchase budget 3. Schedule of cash disbursements (merchandise) 4. Schedule of cash disbursements (operating expenses) 5. Cash budget