Problem 8-29 (Algo) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shillow Company, a wholesale distributor of consumer goods. a. The gross matgin is 25% of sales. b. Actual and budgeted sales data: c. Soles are 60% for cash and 40% on credit. Ciedit sales are collected in the month following sale . The accounts recelvable at March. 31 are a result of March credit sales. a. Each monthis 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 hal is paid for in the following month. The accounts paryable at March 31 aie the resudt of March purchases of liventory 4. Monthly expenses are as follows: consissiors, 12% of sales, rent, 52100 per montf. other expenses (excluding depreciation). 62 of sales, Assume that these expenses are pald nomthly Depreclation is 5945 per month (includes depreciation on new assets) 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 trventory 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 imventory. f. Monthly expenses are as follows: commissions, 12% of sales, rent, $3,100 per month, other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $945 per month (includes depreciation on new assets). 9. Equipment costing $2.300 will be purchased for cosh 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 18 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 puichases. 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. Prebare a balance sheet as of lune Jo. Prepare a balance sheet as of June 30