problem 9-27

PROBLEM 9-27 Completing a Master Budget [LO9-2, LO9-4, LO9-7, LO9-B, LO9-9, LO9-10 The following data relate to the operations of Shilow Company, a wholesale distributor of con- sumer goods: Current assets as of March 31 $8,000 $20,000 $36,000 .. $120,000 $21,750 Cash Inventory Bulldings and equipment, net Accounts payable The gross margin is 25% of sales. Actual and budgeted sales data: b. March (actual). " April.. May $50,000 $60,000 $72,000 $90,000 $48,000 July e. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following d Each month's ending inventory should equal 80% of the following month's budgeted cost of e.l| One-half of a month's inventory purchases is paid for in the month of purchase; the other half sale. The accounts receivable at March 31 are a result of March credit sales. goods sold. is paid for in the following month. The accounts payable at March 31 are the result of March Monthly expenses are i , e c s commissions 12% of sales rent. S2.500 per month; other expenses (excluding depreciation , 6% of sales. Assume that these expenses are paid monthly 1 balance of al least $4,000 at the end