The following data relate to the operations of Dillinger Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Capital stock Retained earnings $ 12,000 $ 24,000 $ 9,800 $ 180,000 $ 40,500 $ 44,000 $141,300 a. Gross margin is 30% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 80,000 $ 70,000 S 85,000 $ 90,000 S 62,000 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, $16,500; rent, $4,000 per month; other expenses (excluding depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $4,000 per month (includes depreciation on new assets). g. Equipment costing $4,000 will be purchased for cash in April. The company must maintain a minimum cash balance of $2,000. 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: Dillinger Company Schedule of Expected Cash Collections April May June Quarter - Total Cash sales Credit sales Total collections 2. Complete the following: June Quarter - Total Budgeted cost of goods sold Dillinger Company Merchandise Purchases Budget April May $ 49,000 11,900 60,900 9,800 51,100 Total needs Required purchases Dillinger Company Schedule of Expected Cash DisbursementsMerchandise Purchases April May June Quarter - Total March purchases $ 40,500 $ 40,500 April purchases 12,775 38,325 51,100 May purchases June purchases Total disbursements 53,275 3. Complete the following schedule: Dillinger Company Schedule of Expected Cash DisbursementsSelling and Administrative Expenses April May June Quarter - Total Salaries and wages $ 16,500 Rent 4,000 Other expenses 5,600 Total disbursements $ 26,100 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 12,000 73,000 85,000 $ 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 53,275 26,100 4,000 83,375 1,625 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: Selling and administrative expenses 6. Prepare a balance sheet as of June 30. Dillinger Company Balance Sheet June 30 Assets Current assets: Total current assets Total assets Liabilities and Stockholders' Equity Current liabilities: Stockholders' equity Total liabilities and equity