The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 8,700 Accounts receivable $ 24,800 Inventory $ 46,800 Building and equipment, net $ 116,400 Accounts payable $ 28,050 Common stock $ 150,000 Retained earnings $ 18,650 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual April May June July $ 62,000 $ 78,000 $ 83,000 $ 108,000 $ 59,000 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, $3,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly, Depreciation is $873 per month (includes depreciation on new assets). 9. Equipment costing $2,700 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 no 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 Schedule of Expected Cash Collections April May Juno $ 46,800 $ 49,800 $ 64,800 24,800 31,200 33,200 $ 71,600 $ 81,000 $ 98,000 Cash sales $ Credit sales Total collections 161,400 89,200 250,600 Recured 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 Book ences Merchandise Purchases Budget April May June Quarter Budgeted cost of goods sold $ 58,500 $ 62,250 $ 81,000 $ 201,750 Add desired ending merchandise inventory 49,800 64,800 34,500 35,400 Total needs 108,300 127,050 115,500 237,150 Less beginning merchandise inventory 46,800 49,800 64,800 46,800 Required purchases $ 61,500 $ 77,250 $ 50,700 $ 190,350 Budgeted cost of goods sold for April = $78.000 sales x 75% = $58,500, Add desired ending inventory for April = $62.250 * 80% = $49,800 Schedule of Expected Canh Disbursements--Marchandise Purchases April May June Quarter March purchases s 28,050 $ 62,250 $ 4,445 $ 28,050 April purchases 30,750 30.750 98,000 61,500 May purchases 38,625 38,625 77,250 June purchases 25,800 25,8007 25,800 Total disbursements $ 84,600 $ 131,625 $ 166,870 $ 192,600 Complete this question by entering your answers in the tabs below. 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) May Juno Quarter 0 0 0 5 Shllow Company Cash Budget April Beginning cash balance $ 8,700 Add collections from customers 71,600 Total cash available 80,300 Less cash disbursements: For inventory 58,800 For expenses 17,540 For equipment 2,700 Total cash disbursements 79,040 Excess (doficiency) of cash available over disbursements 1.260 Financing Borrowings Repayments Interest 0 Total financing $ 1.260 $ Ending cash balance 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 Required 1 Required 2 Required 3 Required 4 Required 5 Prepare an absorption costing income statement for me quarter ended June 30. Shilow Company Income Statement For the Quarter Ended June 30 Cost of goods sold: 0 es 0 0 Selling and administrative expenses: 0 0 0