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please help with (all) 1-5 thank you Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The foliowing data relate to the
please help with (all) 1-5 thank you
Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The foliowing 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 dote: 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-haif of a month's inventory purchases is paid for in the month of purchase, the other half is pold for in the following month. The accounts payable at March 31 are the resuit of March purchases of inventory. f. Monthly expenses are as follows: commissions, 12% of soles; rent, $2.200 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthy. Depreciation is $945 per month (includes depreciation on new assets) 9. Equipment costing $1,400 wil be purchased for cash in Apri. h. Manogement would she to maintain a minimum cash balance of ot least $4,000 at the end of each month. The company has an ogreement with a iocal bonk that dilows the company to borrow in increments of $1.000 at the beginning of each month, up to a total loan baiance of $20,000. The interest rate on these loans is 1k per manth and for simplicity wo will assume that interest is not compounded. The compary would, as far as it is able, repay the loon plus occumalated 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. Complete the schedule of expected cash collections Step by Step Solution
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