The following data relate to the operations of Dillinger Company, a wholesale distributor of consumer goods Current assets as of March 31: $ 17,000 $19,500 $ 9,520 $150,000 $37,500 $ 41,000 $117,520 Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Capital stock Retained eanings a. Gross margin is 30% of sales b. Actual and budgeted sales data 65,000 $68,000 $ 76,000 $92,000 $60,000 March (actual) ril May June 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 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 Monthly expenses are as follows: salaries and wages, $13,500; rent, $3,700 per month; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly Depreciation is $2,000 per month (includes depreciation on new assets) f. g. Equipment costing $10,000 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) 5. Prepare an absorption costing income statement for the quarter ended June 30. Dillinger Company Income Statement For the Quarter Ended June 30 Cost of goods sold: 0 0 Selling and administrative expenses: 0 0 6. Prepare a balance sheet as of June 30. Dillinger Company Balance Sheet June 30 Assets Current assets: Total current assets Total assets 0 Liabilities and Stockholders' Equity Current liabilities: Stockholders' equity: Total liabilities and equity 0