The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods Current assets as of March 31 Cash$9,400Accounts receivable$27,600Inventory$51,000Building and equipment, net$99,600Accounts payable$30,675Capital stock$150,000Retained earnings$6,925 The gross margin is 25 of sales Actual and budgeted sales data March (actual)$69,000April$85,000May$90,000June$115,000July$66,000 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 Each month's ending inventory should equal 80 of the following month's budgeted cost of goods sold 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 Monthly expenses are as follows commissions, 12 of sales rent, $4,200 per month other expenses (excluding depreciation), 6 of sales Assume that these expenses are paid monthly Depreciation is $747 per month (includes depreciation on new assets) Equipment costing $3,400 will be purchased for cash in April 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 data above 1 Complete the following schedule 2 Complete the following 3 Complete the following cash budget (Borrow and repay in increments of $1,000 Cash deficiency, repayments and interest should be indicated by a minus sign ) 4 Make an absorption costing income statement for the quarter ended June 30 5 Make a balance sheet as of June 30

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The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31:Cash$9,400Accounts receivable$27,600Inventory$51,000Building and equipment,

The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:

Current assets as of March 31:Cash$9,400Accounts receivable$27,600Inventory$51,000Building and equipment, net$99,600Accounts payable$30,675Capital stock$150,000Retained earnings$6,925

The gross margin is 25% of sales.
Actual and budgeted sales data:

March (actual)$69,000April$85,000May$90,000June$115,000July$66,000

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.
Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold.
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.
Monthly expenses are as follows: commissions, 12% of sales; rent, $4,200 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $747 per month (includes depreciation on new assets).
Equipment costing $3,400 will be purchased for cash in April.
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 data above:

1. Complete the following schedule.

2. Complete the following:

3. Complete the following cash budget:(Borrow and repay in increments of $1,000. Cash deficiency, repayments and interest should be indicated by a minus sign.)

4. Make an absorption costing income statement for the quarter ended June 30.

5. Make a balance sheet as of June 30.