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 $ 8,500 $ 25,200 $ 47,400 $ 114,000 $ 28,425 $ 150,000 $ 16,975 a The gross margin is 25% of sales b. Actual and budgeted sales data March (actual) April May June July $ 63,000 $79.000 $ 84,000 $ 109,000 $ 60,000 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 mooth 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, $3,600 per month other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly Depreciation is 5855 per month oncludes depreciation on new assets) 9. Equipment costing $2,800 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 of expected cash collections 2. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. 3. Complete the cash budget 4 Prepare an absorption costing income statement for the quarter ended June 30. 5. Prepare a balance sheet as of June 30 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Quarter Complete the schedule of expected cash collections. Schedule of Expected Cash Collections April May June Cash sales $ 47.400 $ 50.400 $ 65,400 Credit sales 25.200 33 600 43 600 Total collections $ 72,600 S 84.000 $ 109,000 Requirea: Using the preceding data: 1. Complete the schedule of expected cash collections. 2. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases 3. Complete the cash budget. 4 Prepare an absorption costing Income statement for the quarter ended June 30 5. Prepare a balance sheet as of June 30. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the merchandise pu hases budget and the schedule of expected cash disbursements for merchandise purchases. Merchandise Purchases Budget April May June Quarter Budgeted cost of goods sold $ 59,250 $ 63 0001 581.750 $ 204,000 Add desired ending merchandise inventory 50,400 65.400 36.000 151,800 Total needs 109,650 128 400 117,750 355 800 Less beginning merchandiso inventory 47 400 Required purchases $ 62,250 $ 128,400 3 117.750 S 355,800 Budgeted cost of goods sold for April = 579,000 sales x 75%= 559 250 Add desired ending inventory for April = $63,000 X 80% = $50.400 Schedule of Expected Cash Disbursements-Merchandise Purchases April May June Quarter March purchases $ 28 425 s 28 425 April purchases 31.125 31,125 62.250 May purchases June purchases Total disbursements $ 59.5505 31,125$ 05 90.675 3. Complete the cash budget. 4. Prepare an absorption costing income statement for the quarter ended June 30. 5. Prepare a balance sheet as of June 30. 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.) June Quarter 0 0 0 Shilow Company Cash Budget April May Beginning cash balance $ 8,800 Add collections from customers 72.600 Total cash available 81,400 Less cash disbursements For inventory 59 550 For expenses 17 820 For equipment 2.800 Total cash disbursements 80.170 Excess (deficiency) of cash available over disbursements 1230 Financing Borrowings 3,000 Repayments 0 Interest 0 Total financing 3,000 Ending cash balance $ 4,230 5 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 3. Complete the cash budget. 4. Prepare an absorption costing income statement for the quarter ended June 30. 5. Prepare a balance sheet as of June 30. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Prepare an absorption costing income statement for the quarter ended June 30. Shilow Company Income Statement For the Quarter Ended June 30 Sales Cost of goods sold 0 OC 0 Gross margin Selling and administrative expenses Other expenses Depreciation Interest expense 0 0 4. Prepare an dusorpuon cosung income statement lui 5. Prepare a balance sheet as of June 30. 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 Cash Accounts receivable Inventory 43,600 43,600 $ 43.600 Total current assets Building and equipment-net Total assets Liabilities and Stockholders' Equity Accounts payable $ 26,175 Stockholders' equity Common stock Retained earnings 0 26,175 Total liabilities and stockholders' equity 5