Problem 8-29 (Algo) Completing a Master Budget [LO\&-2, LO\&-4, LO8-7, LO\&-8, LO\&-9, LO8-10] The following das r relate to the operations of Shilow Company, a wholesale distributor of consumet goods a. The gross matgn is 25% of sales: b Actual and budgeted sales data C. Sales are 60% for cash and 40% on creait Credit sales are collected in the month following sale. The accounts receivabie 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 cosf or goods sold e One-hal of a month's inventory purchases is paid for in the month of purchase, the other halfis paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory 1 Monthiy expenses are as follows commissions, 12% of sales, rent, 54,000 per month, other expenses (excluding depreciation), 6% of sales Assume that these expenses are pard monthly Depteciation is $783 per month (includes depreciation on new assets). g. Equipment costing $3200 will be purchased for cash in April h. Management would like to mantain a minimum cash balance of at least $4,000 at the end of each month The company has an agreement with a tocal bank that allows the company to borrow in ince ements 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 18 per month and for smplicty we will assume that interest is not compounded. The company would, as far asit is able, repay the loan plus accumulated interest at the end of the quarte: 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 quatter 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. Problem 8-29 (Algo) Completing a Master Budget [LO\&-2, LO\&-4, LO8-7, LO\&-8, LO\&-9, LO8-10] The following das r relate to the operations of Shilow Company, a wholesale distributor of consumet goods a. The gross matgn is 25% of sales: b Actual and budgeted sales data C. Sales are 60% for cash and 40% on creait Credit sales are collected in the month following sale. The accounts receivabie 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 cosf or goods sold e One-hal of a month's inventory purchases is paid for in the month of purchase, the other halfis paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory 1 Monthiy expenses are as follows commissions, 12% of sales, rent, 54,000 per month, other expenses (excluding depreciation), 6% of sales Assume that these expenses are pard monthly Depteciation is $783 per month (includes depreciation on new assets). g. Equipment costing $3200 will be purchased for cash in April h. Management would like to mantain a minimum cash balance of at least $4,000 at the end of each month The company has an agreement with a tocal bank that allows the company to borrow in ince ements 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 18 per month and for smplicty we will assume that interest is not compounded. The company would, as far asit is able, repay the loan plus accumulated interest at the end of the quarte: 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 quatter 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