The following data relate to the operations of Shalow Compony, a wholesale distributor of consumer goods: a. The gross margin is 25% of sales. b. Actuol and budgeted sales data. c. Sales are 60% for cash and 40% on credit, Credit soles are collected in the month following sale. The pccounts receivable at March 31 are a result of March credit sales: d. Each monthis ending inventory should equal 80% of the following month's budgeted cost of goods sold. e. One-taif of a month's inventory purchases is paid for in the month of purchase; the other had is pald for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. t. Monthly expenses are as follows: commissions, 12% of salos; rent, $3,900 per montrc other expenses (excluding depreciadon), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $801 per month (includes depreciasion on new assets) 9. Equipment costing $3.100 will be purchased for cash in Aprit. 7. Management would ike to maintain a minimum cash bolance of at least $4,000 at the end of cach month. The compary has an agreement with a local bank that allows the company to borrow in increments of $1.000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 18 per month and for simplicity we will assume that imelest is not. compounded. The compony would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. h. Managentert would like to maintain a minimum cash balance of at least 54,000 at the cod of each morah. The cortpary hias an agreement with a local bonk that allows the compary lo borrow in incremsonts of $1,000 at bhe beginning of esen merth. up to a compeufded. The company would, as far as it is able. fepay the loan plus accumulated interest at the ehd of the quartet Resuired: Wsing the precesting data. 1. Eomglete the schedule of exprected cash colkctions. 2. Comatete the merchandise purchasers budget and the sehedule of ekpectod cash disbursements for merchandise purshases. 3. Camplete the cash budget 4. Prepare an absorption costing income statement for the auater ended June 30 5. Frepare a balance shedi as of Jume-30. Complete this question by entering your answers in the tabs below.. Gompirte the schedule of expected cast cotlections