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

current assets as of MARCH 31
cash	$ 8,300
accounts receivable	$23,200
inventory	$44,400
building and equipment, net	$126,000
accounts payable	$26,550
capital stock	$150,000
retained earnings	$25,350

a. The gross margin is 25% of sales

b. Actual and budgeted sales data:

March (Actual)	$ 58,000
April	$ 74,000
May	$ 79,000
June	$ 104,000
July	$ 55,000

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 months ending inventory should equal 80% of the following months budgeted cost of goods sold.

E. One-half of a months 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, $3,100 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $945 per month (includes depreciation on new assets).

G. Equipment costing $2,300 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 $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

Complete the following schedule

Schedule of Expected Cash Collections
	April	May	June	Quarter
Cash sales	$44,400	$47,400	$62,400	$154,200
Credit sales	23,200
Total collections	$67,600	$47,400	$62,400	$154,200

complete the following

Merchandise Purchases Budget
	April	May	June	Quarter
Budgeted cost of goods sold	$55,500
Add desired ending inventory	47,400
Total needs	102,900	0	0	0
Less beginning inventory	44,400
Required purchases	$58,500	$0	$0	$0

Schedule of Expected Cash DisbursementsMerchandise Purchases
	April	May	June	Quarter
March purchases	$26,550			$26,550
April purchases	29,250	29,250		58,500
May purchases
June purchases
Total disbursements	$55,800	$29,250	$0	$85,050