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 $ 7,700 $ 20,800 $ 40,800 Building and equipment, net $ 129,600 Accounts payable Connon stock Retained earnings $ 24,300 $ 150,000 $ 24,600 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) Apr11 May June $ 52,000 $ 68,000 July $ 73,000 $ 98,000 $ 49,000 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 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, $2,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $972 per month (Includes depreciation on new assets). 9. Equipment costing $1,700 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: 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 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 Complete this question by entering your answers in the tabs below. Required Required Complete the schedule of expected cash collections. Schedule of Expected Cash Collections Cash sales Appl 340.000 Muy Credit sales Total colections $01.000 June Quarter Required 2> Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Merchandise Purchases Budget April May June Quarter Budgeted cost of goods sold $ $51,000 54,750 Add desired ending merchandise inventory 43,800 Total needs 04.800 Less beginning merchandise inventory 40.800 Required purchases $54.000 Budgeted cost of goods sold for April $68.00esx75% $51.000 Add desired ending inventory for April $54,750 x 80% $43.800 Schedule of Expected Cash Disbursements-Merchandise Purchases March purchases April purchases April May $24,300 27.000 June Quarter 27.000 $ 24.300 54.000 May purchases June purchases Total disbursements Required 1 Required 2 Required 3 Required 4 Required 5 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Shilow Company Cash Budget April May June Quarter Beginning cash balance Add collections from customers Total cash available Less cash disbursements: For inventory $ 7,700 61,600 69,300 51,300 For expenses 14,740 For equipment 1.700 Total cash disbursements 67.740 Excess (deficiency) of cash 1,500 available over disbursements Financing Borrowings Repayments Interest Total financing Ending cash balance 27 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 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 Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a balance sheet as of June 30. Shilow Company Balance Sheet June 30 Current assets: Assets Total current assets Total assets Liabilities and Stockholders' Equity Stockholders' equity Total liabilities and stockholders' equity