The following data relate to the operations of Shilow Company, a wholesale distributorf consumer goods Current assets as of March 31: $ 8,000 $ 20,e00 $ 36,00e $120,eee $ 21,750 $15e, eee $ 12,250 Cash Accounts receivable 24:53 Inventory Building and equipment, net Accounts payable Common stock Retained earnings ok it es a. The gross margin is 25 % of sales. b. Actual and budgeted sales data: March (actual) April ay $5e,e0e $ 60,eee $72,eee $90,000 $48,e00 June July c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts recelvable 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 seles, rent. $2,500 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 $1,500 will be purchased for cash in April. h. Manogement would like to maintain a minimum cash balance of ot 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 2433 ck rint rences Required: Using the preceding deta 1. Complete the schedule of expected cosh collections. 2. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. 3. Complete the cash budget 4. Prepare an absorption costing income state ment for the quarter endd 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. Schedule of Expected Cash Collections April May June Quarter Cash sales $36,000 20,000 Credit sales Total collections $56,000 Required 2 Required 1 Required 2 Required 3 Required 4 Required 5 Required 1 Complete the merchandise purchases budget and the schedule of expected cash disbursements for mere Merchandise Purchases Budget Quarter June April May $ 45,000 $54,000 Budgeted cost of goods sold Add desired ending merchandise inventory Total needs Less beginning merchandise inventory Required purchases Budgeted cost of goods sold for April = $60,000 sales x 75% = $45,000. Add desired ending inventory for April $54,000 x 80 % = $43 ,200. 43,200 88,200 36,000 52,200 Schedule of Expected Cash Disbursements-Merchandise Purchases April May June Quarter Complete this question by entering your answers in the tabs below. Redaired 3 Required 5 Required 4 Required 2 Required 1 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Shilow Company Cash Budget Quarter May June April 8,000 $ Beginning cash balance 56,000 Add collections from customers Total cash available 64,000 Less cash disbursements: 47,850 For inventory 13,300 For expenses 1,500 For equipment 62,650 Total cash disbursements 1. Complete the schedule of expected cash collections. 2. Complete the merchandise purchases budget and the schedule of expected cash c 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 5 Required 2 Required 3 Required 4 Required 1 Prepare an absorption costing income statement for the quarter ended June 30. Shilow Company Income Statement For the Quarter Ended June 30 Cost of goods sold: Selling and administrative expenses: