The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods Current assets as of March 31: Cash Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings 3. 8. $ 20,000 5 36,000 $ 120,000 $ 21,750 $ 150,000 $ 12,250 ces a. The gross margin is 25% of sales b. Actual and budgeted sales data: March (actual) April May June July $ 50,000 5 60,000 572,000 $ 90,000 $ 48,000 c. Sales are 60% for cash and 40% on credit Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold e One-half of a month's inventory purchases is paid for in the month of purchase the other halfis paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory fonthlynences are as follows: commissions, 125 of sales, rent $2.500 per month other expenses (excluding deprecations is 5900 per month includes depreciation on new assets) c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold e. One-half of a month's inventory purchases is paid for in the month of purchase, the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory f. Monthly expenses are as follows commissions, 12% of sales, rent. 52,500 per month other expenses (excluding depreciation 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (includes depreciation on new assets) g. Equipment costing 51.500 will be purchased for cash in April h Management would like to maintain a minimum cash balance of at least $4.000 at the end of each month. The company 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 1% 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 accumulated interest at the end of the quarter Required: D Using the preceding data 1. Complete the schedule of expected cash collections 2. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandite 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, Complete this question by entering your answers in the tabs below. pur MULTIC wuuy LIU LUUALLUMIL 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the schedule of expected cash collections. Quarter Cash sales Credit sales Total collections Schedule of Expected Cash Collections April May June $ 36,000 20,000 $ 56,000 Required 2 > Next urchases budget and the schedule of expected cash disbursements for merchandise purchases June Quarter Book Print Mences Merchandise Purchases Budget April May Budgeted cost of goods sold $ 45,000 S 54000 Add desired ending merchandise inventory 43 200 Total needs 88 200 Less beginning merchandise inventory 36.000 Required purchases $ 52,200 Budgeted cost of goods sold for April = $60,000 sales75%$45,000 Add desired ending inventory for April = $54,000 80%-543 200 Schedule of Expected Cash Disbursements Merchandise Purchase April May June Quarter $ 21.750 S 21.750 March purchases 26,100 5 26.100 52 200 April purchases May purchases June purchases Total disbursements Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Shilow Company Cash Budget May June Quarter April $ 8.000 56,000 64.000 Beginning cash balance Add collections from customers Total cash available Less cash disbursements: For Inventory For expenses For equipment Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing 47,850 13,300 1,500 62.650 1350 Ending cash balance w Income Statement For the Quarter Ended June 30 Cost of goods sold Selling and administrative expenses: Budget i =http Saved Shilow Company Balance Sheet June 30 Assets Current assets: Total current assets Total assets Liabilities and Stockholders' Equity Stockholders' equity Total liabilities and stockholders' equity