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

Current assets as of March 31:
Cash	$	19,00
Accounts receivable	$	32,000
Inventory	$	57,600
Building and equipment, net	$	161,000
Accounts payable	$	41,600
Capital stock	$	210,000
Retained earnings	$	18,000

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

March (actual)	$80,000
April	96,000
May	108,000
June	126,000
July	78,000

3. 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.
4. At the end of each month, inventory is to be on hand equal to 80% of the following months sales needs, stated at cost.
5. One-half of a months inventory purchases are paid for in the month of purchase; the other half are paid for in the following month. The accounts payable at March 31 are a result of March purchases of inventory.
6. Monthly expenses are as follows: salaries and wages, 12% of sales; rent, $5,000 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $1,500 per month (includes depreciation on new assets).
7. Equipment costing $2,100 will be purchased for cash in April.
8. The company must maintain a minimum cash balance of $6,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month; borrowing must be in multiples of $1,000. The annual interest rate is 12%. Interest is paid only at the time of repayment of principal; figure interest on whole months (1/12, 2/12, and so forth).

Requirement 1:

Prepare a schedule of expected cash collections

Schedule of Expected Cash Collections
	April	May	June	Quarter
Cash sales	$	$	$	$
Credit sales	$
Total collections	$	$	$	$

Requirement 2:

2. Prepare a schedule of inventory purchases and a schedule of expected cash disbursements for purchases..

Schedule of Inventory Purchases
	April	May	June	Quarter
Total needs:

Schedule of Expected Cash Disbursements forPurchases
	April	May	June	Quarter
March purchases
April purchases
May purchases
June purchases
Total disbursements	$	$	$	$

Schedule of Expected Cash Disbursements foe Operating Expenses

April

May

June

Quarter

Total Cash Disbursements

Shilow Company
Cash Budget
	April	May	June	Quarter
Beginning cash balance
Total cash available
Deduct: Disburesments
Total Disbursements
Excess (deficiency) of cash
Financing
Total financing

Requirement 4 prepare an income statement for the quarter ended June 30. (create a table)

Requirement 5 prepare a balance sheet as of June 30 (create a table)