Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8.9, LO8-10] The following dats relste to the operstions of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: $ 7,288 18,8 37,see Cash Accounts reccivable Building and equipment, net Accounts payable Cormon stock Retained earnings $ 22,425 15e,eee 14,975 s. The b. Actual and budgeted sales dsts: gross margin is 25% of sales. March (actual) 47,8e 63,ee $ 68,8ee May une uly 44,8e c Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The occounts 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-half ofa month's inventory purchsses is paid for in the month of purchase; the other half is paid for in the following month. The sccounts paysble at March 31 are the result of March purchases of inventory. Monthly expenses are as follows: commissions. 12% of sales; rent, $2,000 per month; other expenses (excluding depreciation, 6% of sales. Assume thst these expenses are paid monthly. Depreciation is $927 per month (includes deprecistion on new assets g. Equipment costing $1,200 will be purchased for cash in April. h. Management would like to maintain a minimum cash balance of st lesst $4,000 at the end of each month. The company has an agreement with a local bank thst allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of S20,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as for as it is able, repsy the loan plus accumulsted interest at the end of the quarter Required: Using the preceding dats: 1. Complete the following schedule: 2. Complete the following: 3. Complete the following cash budget 4. Prepare an absorption costing income statement for the quarter ended June 30. 5. Prepare a bslance sheet as of June 30