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

Current assets as of March 31:
Cash	$	15,000
Accounts receivable	$	21,600
Inventory	$	10,640
Buildings and equipment (net)	$	160,000
Accounts payable	$	38,500
Capital stock	$	42,000
Retained earnings	$	126,740

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

March (actual)	$ 72,000
April	$ 76,000
May	$ 81,000
June	$ 90,000
July	$ 82,000

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 is 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, $14,500; rent, $3,800 per month; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $3,000 per month (includes depreciation on new assets).
g.	Equipment costing $11,000 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).

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.

2. Complete the following: June + Quarter - Total Budgeted cost of goods sold Dillinger Company Merchandise Purchases Budget April May $ 53,200 11,340 64,540 10,640 $ 53,900 $ Total needs 0 0 0 Required purchases 0 $ 0 $ 0 Dillinger Company Schedule of Expected Cash Disbursements-Merchandise Purchases April May June Quarter - Total March purchases $ 38,500 $ 38,500 April purchases 13,475 40,4251 53,900 May purchases June purchases Total disbursements 51,975 S 40,425 $ 0 $ 92,400 3. Complete the folowing schedule: April Dillinger Company Schedule of Expected Cash Disbursements-Selling and Administrative Expenses May June Quarter . Total Salaries and wages $ 14,500 Rent 3,800 Other expenses 6,080 Total disbursements $ 24,380 $ 0 $ 0 $ 0 4. Complete the following cash budget: (Cash deficiency, repayments and interest should be indicated by a minus sign.) June Quarter - Total Dillinger Company Cash budget April May 15,000 74,800 89,800 $ 0 0 0 Cash balance, beginning Add cash collections Total cash available Less cash disbursements: For inventory For expenses For equipment Total cash disbursements Excess (deficiency) of cash Financing Borrowings Repayments Interest Total financing Cash balance, ending 51,975 24,380 11,000 87,355 2,445 0 0 0 0 0 0 0 0 $ 0 0 $ 0 0 $ 2,445 $ MacBook Air