PLEASE HELP FILL IN BLANK/UNANSWERED PARTS

Assignment #7 - Spring 2020 A Saved The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets of March 31: Caen 20 points Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings 9.400 27.600 51,000 99,600 30,675 150,000 6,925 eBook a. The gross margin is 25% of sales. b. Actual and budgeted sales data: Print March (actual) April 69.000 85.000 90,000 115.000 66.000 July References 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, $4,200 per month; other expenses (excluding depreciation), 6% of sales. Assume that 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 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 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. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Merchandise Purchases Budget whases budget April May June Quarter Budgeted cost of goods sold $ 63,750 $67,500 $ 86,250 $ 217,500 Add desired ending merchandise inventory 54,000 69,000 39,600 Total needs 117,750 136,500 125,850 Less beginning merchandise inventory 51,000 54,000 69,000 Required purchases $ 66,750 $82,500 $ 56,850 $ 217,500 Budgeted cost of goods sold for April = $85,000 sales * 75% = $63,750. Add desired ending inventory for April = $67,500 * 80% = $54,000. Schedule of Expected Cash Disbursements-Merchandise Purchases April May June Quarter March purchases $ 30,675 $ 0 $ 0 $ 30,675 April purchases 33,375 33,375 0 66,750 May purchases 01 41,250 41,250 82,500 June purchases 0 0 28,425 28,425 Total disbursements $ 64,050 $74,625 $ 69,675 $ 208,350 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Quarter Shilow Company Cash Budget April May $ 9,400 $ 4,050 78,600 | 88,000 | 88,000 92,050 $ Beginning cash balance Add collections from customers Total cash available June 4,025 105,000 109,025 Less cash disbursements: 74,625 69,675 64,050 19,500 3,400 86,950 0 74,625 0 69,675 3,400 3,400 1,050 17,425 39,350 (3,400) For inventory For expenses For equipment Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balance 01 (10,000) (10,000) 3,000 7,000 01 01 01 3,000 7,000 4,050 $ 24,425 (10,000) 29,350 (10,000) $ (13,400) $ $ Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare an absorption costing income statement for the quarter ended June 30. Shilow Company Income Statement For the Quarter Ended June 30 Sales Cost of goods sold: Selling and administrative expenses: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a balance sheet as of June 30. Shilow Company Balance Sheet June 30 Assets Current assets: Total current assets Total assets $ 0 Liabilities and Stockholders' Equity Stockholders' equity: Total liabilities and stockholders' equity