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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 Accounts receivable

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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 Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings $ 7,300 $ 19,200 $ 38,400 $ 124,800 $ 22,800 $ 150,000 $ 16,900 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June $ 48,000 $ 64,000 $ 69,000 $ 34,000 CA Check my work April May June July $ 64,000 $ 69,000 $ 94,000 $ 45,000 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 1. Monthly expenses are as follows: commissions, 12% of sales; rent. $2,100 per month; other expenses (excluding depreciation) , 6% of sales. Assume that these expenses are paid monthly. Depreciation is $936 per month (includes depreciation on new assets) g. Equipment costing $1,300 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 $1000 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 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 $ 38,400 19,200 $ 57,600 $ 0 $ $ 0 $ 0 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 merchand June Quarter Merchandise Purchases Budget April May Budgeted cost of goods sold $ 48,000 $ 51,750 Add desired ending merchandise inventory 41,400 Total needs 89,400 51,750 Less beginning merchandise inventory 38,400 Required purchases S 51,000 $ 51,750 $ Budgeted cost of goods sold for April = $64,000 sales 75% = $48,000 0 0 0 $ 0 Ad Homininin Ann-054 760 Ono - in May June Quarter 0 0 0 Shilow Company Cash Budget April Beginning cash balance $ 7300 Add collections from customers 57,600 Total cash available 64,900 Less cash disbursements For inventory 48,300 For expenses 13,620 For equipment 1,300 Total cash disbursements 63,220 Excess (deficiency) of cash available over disbursements 1.680 Financing Borrowings Repayments 0 0 0 0 0 0 Shilow Company Balance Sheet June 30 Assets Current assets kes Total current assets Total assets 0 Liabilities and Stockholders' Equity

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