Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following dota relate to the operations of Shilow Compony, a wholesole distributor of consumer goods: 0. The gross morgin is 25% of sales. b. Actual and budgeted sales dota: c. Soles are 60% for cosh and 40% on credit. Credit soles are collected in the month following sole. The accounts receivsbie or March 31 ore o result of Morch credit soles. d. Each month's ending inventory should equal 80% of the foliowing month's budgeted cost of goods sold. e. One-half of a month's inventory purchoses is poid for in the month of purchase, the other half is poid for in the following month. The accounts payoble at Morch 31 ore the result of Morch purcheses of inventory. t. Monthly expenses ore os follows: commissions, 12% of soles, rent, $3,900 per month; other expenses (exclucing depreciotion), 6% of soles. Adsume thot these expenses are poid monthly. Depreciation is $301 per month (includes depreciation on new assets). 9. Equipment costing $3,100 will be purchosed for cash in April. h. Manogement would like to mointain o minimum cosh balonce of at leost $4,000 ot the end of eoch month. The company hos an ogreement with a locol bonk that allows the compony to borrow in increments of $1,000 ot the beginning of eoch month, up to 0 total loon bolonce of $20,000. The interest rote on these loons is 1is per month ond for a implicity we will ossume that interest is not compounded. The compony would, os far os it is oble, repoy the loon plus occumulated interest of the end of the quarter. Required: Using the preceding dote: 1. Complete the schedule of expected cosh collections. 2. Complete the merchondise purchoses budget ond the schedule of expected cosh disbursements for merchandise purchoses. 3. Complete the cosh budger 4. Prepsie on obsorption costing income stotement for the quarter ended June 30 . 5. Prepore o bolance sheet os of june 30