omplete the merchandise purchases budget and the schedule of expected cash disbursements for merchai Saved c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts recelvable 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 poyable at March 31 are the result of March purchases of inventory. f. Monthly expenses are as follows: commissions, 12% of sales, rent. $4.200 per month; other expenses fexcluding depreclation), 6% of sales. Assume these expenses are paid monthly. Depreciation is $747 per month (includes depreciation on new assets). 9. Equlpment costing $3,400 will be purchased for cash in April. h. Manogement would the to maintain a minimum cash balance of ot least $4,000 at the end of each month. The company has an ogreement with a local bank allowing it to borrow in increments of $1,000 at the begirining of each month. up to a total loan balance of 520,000 . The interest rate on these loans is 1 , per month and, for simplicity, we will assume interest is not compounded. The company would, as for as it is able, repey the loan plus accumulated interest at the end of the quarter. Required: Using the preceding dato: of sales. Assume these expenses are paid monthly. Depreciation is $747 per month (includes depreciation on new assets). g. Equipment costing $3,400 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 ha agreement with a local bank allowing it to borrow in increments of $1,000 at the beginning of each month, up to a total loan of $20,000. The interest rate on these loans is 1% per month and, for simplicity, we will assume interest is not compounded. company woutd, 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 . Complete this question by entering your answers in the tabs below. Saved \begin{tabular}{|c|c|c|c|c|} \hline \multirow{2}{*}{\multicolumn{5}{|c|}{\begin{tabular}{l} Omuw cumpary \\ Cash Budget \end{tabular}}} \\ \hline & & & & \\ \hline & April & May & June & Quarter \\ \hline Beginning cash balance & \$ 9,400 & & & \\ \hline Add collections from customers & 78,600 & & 1 & \\ \hline Total cash avaliable & 88,000 & 0 & 0 & 0 \\ \hline \multicolumn{5}{|l|}{ Less cash disbursements: } \\ \hline For inventory & 64,050 & & I & \\ \hline For expenses & 19,500 & & 7 & \\ \hline For equipment & 3,400 & & 7 & \\ \hline Total cash disbursements & 86,950 & 0 & 0 & 0 \\ \hline Excess (deficiency) of cash available over disbursements & 1,050 & 0 & 0 & 0 \\ \hline \multicolumn{5}{|l|}{ Financing } \\ \hline \multicolumn{5}{|l|}{ Borrowings } \\ \hline \multicolumn{5}{|l|}{ Repayments } \\ \hline \multicolumn{5}{|l|}{ Interest } \\ \hline Total financing & 0 & 0 & 0 & 0 \\ \hline Ending cash balance & $1.050 & 0 & $ & \$ \\ \hline \end{tabular} Problem 8-29 (Algo) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, L The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: a. The gross margin is 25% of sales. b. Actual and budgeted sales data: Complete this question by entering your answers in the tabs below. Complete the schedule of expected cash collections. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{ Current assets: } \\ \hline E & & \\ \hline 7 & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total current assets & & 0 \\ \hline & & \\ \hline Total assets & $ & \\ \hline \multicolumn{3}{|c|}{ Liabilities and Stockholders' Equity } \\ \hline & & \\ \hline & & \\ \hline \multicolumn{3}{|l|}{ Stockholders' equity: } \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & 0 \\ \hline Total liabilities and stockhoiders' equity & s & 0 \\ \hline \end{tabular}