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 sheet as ofJune 30. Complete this question by entering your answers in the tabs heluw. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the schedule of expected cash collections. mm Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Budgeted cost of goods sold $ 43,?50 $ 52,500 -- Add desired ending merchandise inventory 42,000 --- Total needs 90,?50 52,500 I Less beginning merchandise inventory Reguiredpurchases $ 51,?50 $ 52,500\" $ Budgeted cost of goods sold iorApril = $65,000 sales x 16% = $48350. Add desired ending inventory forApril = $52.52\") K 80% = $42,000. _ a; ____ Total disbursements Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Shilow Company Cash Budget April May June Quarter Beginning cash balance $ 7,400 Add collections from customers 58,600 Total cash available 66,000 0 0 0 Less cash disbursements: For inventory 49,050 For expenses 13,900 For equipment 1,400 Total cash disbursements 64,350 0 0 0 Excess (deficiency) of cash available over disbursements 1,650 0 0 0 Financing: Borrowings Repayments Interest Total financing 0 0 Ending cash balance $ 1,650 $ 0 $ 0 0Prepare an absorption costing income statement for the quarter ended June 30. Shilow Company Income Statement For the Quarter Ended June 30 Cost of goods sold: 0 0 Selling and administrative expenses: 0Prepare a balance sheet as of June 30. Shilow Company Balance Sheet June 30 Assets Current assets: Total current assets Total assets $ 0 Liabilities and Stockholders' Equity Stockholders' equity: Total liabilities and stockholders' equity $ The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash 5 L433 Accounts receivable $ 19,693 Inventory $ 39,633 Building and equipment, net 5 126,663 Accounts payable $ 23,1?5 Common stock $ 156,633 Retained earnings 5 18,325 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) $ 49,899 April $ 65,866- nay $ mass June $ 95,6943- Zluly $ 46,866- c. Sales are 60% for cash 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 8 % ofthe following month's budgeted cost of goods sold. e. Onehalfofa 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 ofinventory. f. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,200 per month: other expenses [excluding depreciation], 6% of sales. Assume that these expenses are paid monthly. Depreciation is $945 per month (includes depreciation on new assets). g. Equipment costing $1.400 will be purchased for cash in April. h. Management would like to maintain a minimum cash balance of at least $4000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1000 at the beginning ofeach 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