Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] The following data relate to the operations of Shilow Company, a wholesale distributor of consumer gpods: a. The gross marginis 25% of saies b. Actual and budpeted sales data: c. Sales are 60% for cash and 40k on credit Credit salet are collected in the month following sate. The accounts recemable at March 31 are a result of March credit sales. d. Coch months ending inventorysbould equal box of the foliowing monitis buegetod cost of goods sold o. One-hat of a months ifventory purchases is pas for in the month of purchase, the ather hat is pold for in the following month the accovnts payable at Merch 31 are the resul of March purchases of imyenory 1. Monthly expenses are as folows compissions, t2 of sales; rent, 32,700 ger monst oaher eagentes lexcluding deareciation, 6w of cales. Aswume that these expenses ace paid menthily Depreciaton is 5990 per month frictudes degreciation on new astsels? 9. Favpment costing 51,900 wit be purchated for cash in Aprit h. Managoment wovld ike to meintan a minimum cash balance of at least 54,000 at the und of each month the company has an efreemem with a local bank thet allows the compary to boirow in increments of 51,000 a the beginning of eoch month, up to: compoundec. The company would, as far as it is abie. repay the ioan plus occamblated interes at ihe end of ihe quarte 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 inventory 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 inventory. f. Monthly expenses are as follows: commissions, 12% of soles; rent, $2,700 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $990 per month (includes depreciation on new assets). 9. Equipment costing $1,900 will be purchased for cash 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 aliows 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 1% 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 purchases. 3. Complete the cash budget. 4. Prepare an absorption costing income statement for the quarter ended June 30. 5. Prepare a balance street as of June 30 . Complete this question by entering your answers in the tabs below. Complete the schedule of expected cash collections