ollowing is selected information relating to the operations of Shilow Company, a wholesale distributor Current assets as of March 31 Cash $ 43,000 Accounts receivable 54,000 Inventory 97,200 Plant and equipment, net 236,000 Accounts payable 81,200 Capital shares 320,000 Retained earnings 29,000 Gross margin is 25 of sales Actual and budgeted sales data are as follows March (actual) $ 135,000 April 162,000 May 174,000 June 192,000 July 133,000 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 At the end of each month, inventory is to be on hand equal to 80 of the following months sales needs, stated at cost 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 Monthly expenses are as follows salaries and wages, 12 of sales rent, $9,500 per month other expenses (excluding depreciation), 6 of sales Assume that these expenses are paid monthly Depreciation is $2,600 per month (includes depreciation on new assets) Equipment costing $3,200 will be purchased for cash in April The company must maintain a minimum cash balance of $11,000 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) 3 Prepare a schedule of expected cash disbursements for operating expenses SHILOW COMPANY Schedule of Expected Cash Disbursements for Operating Expenses April May June Quarter Total cash disbursements $0 $0 $0 $0 The answers for the side have to either be Advertising, General expenses, Other expenses, Rent, Salaries and wages, shipping, and Staff welfare expenses

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ollowing is selected information relating to the operations of Shilow Company, a wholesale distributor: Current assets as of March 31: Cash $ 43,000 Accounts receivable

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


Current assets as of March 31:
Cash	$	43,000
Accounts receivable		54,000
Inventory		97,200
Plant and equipment, net		236,000
Accounts payable		81,200
Capital shares		320,000
Retained earnings		29,000

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


March (actual)	$	135,000
April		162,000
May		174,000
June		192,000
July		133,000

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.
At the end of each month, inventory is to be on hand equal to 80% of the following months sales needs, stated at cost.
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.
Monthly expenses are as follows: salaries and wages, 12% of sales; rent, $9,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $2,600 per month (includes depreciation on new assets).
Equipment costing $3,200 will be purchased for cash in April.
The company must maintain a minimum cash balance of $11,000. 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)

3. Prepare a schedule of expected cash disbursements for operating expenses.

SHILOW COMPANY
Schedule of Expected Cash Disbursements for Operating Expenses
	April	May	June	Quarter



Total cash disbursements	$0	$0	$0	$0

The answers for the side have to either be; Advertising, General expenses, Other expenses, Rent, Salaries and wages, shipping, and Staff welfare expenses