The following data relate to the operations of Shillow Company, a wholesale distributor of consumer goods a. The gross margin is 25k of sales. b. Achual and budgeted sales data: c. Sales are 60 s for canh and 40% on credit. Credit sales are collected in the month following saie. The accounts recelvable at March. 31 are a result of March credit sales. d Each manth's ending inventory should equal 8006 of the following month's budgeted cost of goods soid. e. One-hall of a month's inventory purchases bs paid for in the month of purchase, the other hall is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. t. Montlily expenses are as folows commissions, 12% of sales, tent, $2.500 per month, other expenses (excluding depreciation), 6% of sades. Assume that these expenses are paid monthly. Depreciation is $900 per month fincludes depreciation on new assetsl. 9. Equipment costing 51.500 will be purchased for cosh in April, c. Sales are 60% for cash and 40% on credit, Credit sales are collected in the month followng sale The accounts recelvable at March: 3t are a result of March credit sales. d. Each month's ending invertiory should equal 80% of the following month's budgeted cost of goods sold. e. One-half of a month's inventory purchases is palid for in the month of purchafe: the other half is paid for in the following monith. The accounts payable at March 31 are the result of March purchases of inventoryf L. Monthly expenses ate as follows commissions, 12% of sales; rent, $2,500 per month; other expensies (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (nicludes depreciation on new assets). 9. Equipment costing $1.500 will be purchased for cashin Aprit. h. Management would like to maintain a minimum cash balance of at leest $4.000 at the end of each month. The company hes 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 N per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accuimulated interest at the end of the quartet. Required: Using the preceding data: 1. Complete the schedule of expected cash collections. 2. Complete the merchandise purchases budget and the schedule of expected cash orisbursements for merchandise purchases: 3. Complete the cash budget. 4. Prepare an absorption costing income statement for the quarter ended June 30 5. Prepare a balance sheet as of June 30 Answer is not complete