The following data relate to the operations of Dillinger Company, a wholesale distributor of consumer goods:

Current assets as of March 31: Cash $ 10,500 Accounts receivable $ 21,000 Inventory $ 10,080 Buildings and equipment (net) $ 140,000 Accounts payable $ 36,500 Capital stock $ 40,000 Retained earnings $ 105,080

a. Gross margin is 30% of sales.

b. Actual and budgeted sales data: March (actual) $70,000 April $72,000 May $73,000 June $84,000 July $80,000

c. Sales are 70% for cash and 30% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are the result of March credit sales.

d. Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold.

e. 25% of a month's inventory purchases are paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable at March 31 are a result of March purchases of inventory.

f. Monthly expenses are as follows: salaries and wages, $12,500; rent, $3,600 per month; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $1,000 per month (includes depreciation on new assets).

g. Equipment costing $9,000 will be purchased for cash in April.

h. The company must maintain a minimum cash balance of $5,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month; borrowing must be in multiples of $1,000. The annual interest rate is 12%. Interest is paid only at the time of repayment of principal; figure interest on whole months (1/12, 2/12, and so forth).

The following data relate to the operations of Dillinger Company, a wholesale distributor of consumer goods:

Current assets as of March 31:
Cash	$	10,500
Accounts receivable	$	21,000
Inventory	$	10,080
Buildings and equipment (net)	$	140,000
Accounts payable	$	36,500
Capital stock	$	40,000
Retained earnings	$	105,080

a.	Gross margin is 30% of sales.
b.	Actual and budgeted sales data:

March (actual)

$70,000

April

$72,000

May

$73,000

June

$84,000

July

$80,000

Required:
Using the above data:
1.	Complete the following schedule:

2.	Complete the following:

3.	Complete the following schedule:

4.	Complete the following cash budget: (Cash deficiency, repayments and interest should be indicated by a minus sign.)

5.	Prepare an absorption costing income statement for the quarter ended June 30.

6.	Prepare a balance sheet as of June 30.

These numbers are correct. Please fill in the missing blanks.

Using the above data 1. Complete the following schedule Dillinger Company Schedule of Expected Cash Collections April May Quarter - Total 160,300 64,500 224,800 June Cash sales Credit sales Total collections 50,400 $ 21,000 71,400 $ 51,100 $ 21,600 72,700 $ 58,800 $ 21,900 80,700 $ $ 2. Complete the following: Dillinger Company Merchandise Purchases Budget April May Quarter - Total 160,300 11,200 171,500 10,080 161,420 June Budgeted cost of goods sold Add: desired ending inventory Total needs Less: beginning inventory Required purchases 50,400 $ 10,220 60,620 10,080 50,540 $ 51,100 $ 11,760 62,860 10,220 52,640 $ 58,800 $ 11,200 70,000 11,760 58,240 $