Problem 8-29 (Algo) Completing a Master Budget [LO8.2, LO8-4, LO8-7, LO8-8, LO8.9, LO8-10] The following dats relate to the operations of Shilow Compony, o wholesole distributor of consumer goods: v. The gross morgin is 25% of soles. b. Actusl and budgeted sales data: c. Sales are 60% for cosh 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-hulf of a month's inventory purchsses is poid for in the month of purchose; the other half is poid for in the following month. The accounts payable ot March 31 ore the result of March purchoses of inventory. f. Monthly expenses ore ss follows: commissions, 12% of sules; rent, $2,900 per month; other expenses (excluding depreciation), 6% of sales. Assume these expenses are poid monthly. Deprecistion is $972 per month (includes depreciation on new ussets). g. Equipment costing $2,100 will be purchssed for cosh in April. h. Management would like to maintain a minimum cosh balance of at lesst $4,000 at the end of each month. The compony has an sgreement with a local bonk allowing it to borrow in increments of $1,000 at the beginning of each month, up to a totsl loon bolance of $20,000. The interest rate on these losns is 1% per month and, for simplicity, we will assume interest is not compounded. The compony would, as for as it is able, repoy the loan plus accumulated interest ot the end of the quarter. Required: Using the preceding dota: 1. Complete the schedule of expected cosh collections. 2. Complete the merchondise purchases budget and the schedule of expected cosh disbursements for merchandise purchases. 3. Complete the cosh budget. 4. Prepare an absorption costing income statement for the quarter ended June 30 . 5. Prepore a bolonce sheet os of June 30 . Complete this question by entering your answers in the tabs below. Complete the schedule of expected cash collections