The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash 5 8,666 Accounts receivable 5 24,466 Inventory 5 46,266 Building and equipment, net 5 118,866 Accounts payable 5 27,6?5 Common stock 5 150,066 Retained earnings 5 20,325 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) 5 61,066 April 5 ?}',B66 May 5 82,066 June 5 167,066 July 5 58,066 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% ofthe following month's budgeted cost of goods sold. e. Onehalf 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 ofihventory. f. Monthly expenses are as follows: commissions, 12% of sales; rent, $3,400 per month; other expenses {excluding depreciation), 6% ofsales. Assume that these expenses are paid monthly. Depreciation is $891 per month {includes depreciation on new assets]. g. Equipment costing $2,600 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 ofexpected cash collections. 2. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. 41 r-___._|_s._ l|__ ___|_ |_.__|_._. Complete this question by entering your answers in the labs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare an absorption ousting inoome statement for the quarter ended June 30. Cost of goods sold: Selling and administrative expenses: 4: Required Required ) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare a balance sheet as of June 30. Shilow Company Balance Sheet June 30 Assets Current assets: Total current assets Total assets $ Liabilities and Stockholders' Equity Stockholders' equity: 0 Total liabilities and stockholders' equity $ 0