** (Need help solving for questions 3, 4, and 5). I was able to figure out # 1 and 2.

The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:

Current assets as of March 31:

Cash $8,300

Accounts receivable $23,200

Inventory $44,400

Building and equipment, net $126,000

Accounts payable $26,550

Capital stock $150,000

Retained earnings $25,350

a. The gross margin is 25% of sales.

b. Actual and budgeted sales data:

March (actual) $58,000

April $74,000

May $79,000

June $104,000

July $55,000

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.

f. Monthly expenses are as follows: commissions, 12% of sales; rent, $3,100 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $945 per month (includes depreciation on new assets).

g. Equipment costing $2,300 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 data above Complete the following schedule Schedule of Expected Cash Collections April May June Quarter Cash sales 5 4 4 40 5 47 401 5 62 400 5 154 200 Credit sales 23. 200 29 500 31 600 9 4 490 Total collections 5 6 7 600 5 77090 5 94.000 9 238 600 2 Complete the following Merchandise Purchases Budget April May Quarter Budgeted cast of goods sold $ 55,500 5 59 250 5 78090 5 192 750 Add desired ending inventory 47 40 0 62 490 93.090 23 000 Total needs 02.900 21 650 191090 225 . 750 Less beginning inventory 4 4 400 47 490 62 400 4 4 400 Required purchases $ 585001 5 74 250 5 48.600 5 181 350 Schedule of Expected Cash Disbursements - Merchandise Purchase April May June Quarter March purchases 5 26 550 5 26 550 April purchases 29 250 29 250 500 May purchases 27 475 37 .125 74 250 June purchases 24 30 0 24, 200 Total disbursements 5 55 800 5 66 375 5 61 425 5 183 6003 . Complete the following cash budget : ( Borrow and repay in Increments of $1 090 . Cash deficiency , repayments and Inte is and Interest should be Indicated by a minus sign Shilow Company Cash Budget April May June Quarter Beginning cash balance 8 300 Add cash collections 67 600 Total cash available 75 900 Less cash disbursements Forinventory 55 , BOO For expenses 16 420 For equipment 2.300 Total cash disbursements 74 520 Excess deficiency ) of cash 1 380 Financing Borrowings Repayments Interest Total financing Ending cash balance 1 380 5 OF S 01 54 Prepare an absorption costing Income statement for the quarter ended June 30 Shilow Company Income Statemen For the Quarter Ended June 20 Sales Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Gross margin Selling and administrative expenses Commissions Rent Depreciation Other expenses Net operating income Interest expense Net income5 . Prepare a balance sheet as of June 30 Shilow Company Balance Sheet June 30 Assets Current assets : ash Account receivable Inventory Total current assets Building and equipment -net Total assets Liabilities and Stockholders Equity Account payable Stockholders equity Retained earnings Common stock Total liabilities and stockholders equity