The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31 Cash $ 8.000 Accounts receivable 20,000 Inventoly 36,000 Buildings and equipment, net 120,000 Accounts payable 21,750 Common shares 150,000 Retained earnings 12,250 a The gross margin is 25% of sales b Actual and budgeted sales data are as follows: March (actual) 550,000 April 60,000 May 72,000 June 90,000 July 48,000 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 the 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 one-half is paid for in the following month. The accounts payable at March 31 are the result of March pur-chases of inventory. f. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,500; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month and includes depreciation on new assets. g. Equipment will be acquired for cash: $1,500 in April. h. Management would like to maintain a minimum cash balance of $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow as needed 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 foi simplicity we will assume that interest is not compounded The company would, as fat as it is able, repay the loan plus accumulated interest at the end of the quarter Required Using the preceding data, complete the following: 1. Schedule of expected cash collections April May June Quarter Cash sales $36,000 Credit sales 20,000 Total collections $56,000 2 Merchandise purchases budget- April May June Quarter Budgeted cost of goods sold $45,000* Add dem:ft ending inventory 43,200' Total needs 88200 Less beginning inventory 36 000 Required purchases $52,200 `560.000 sales x 75% '554,000 x 80% Schedule of expected cash disbursementMerchandise purchases- April May June Quarter March purchases $21,750 $21.750 April purchases 26,100 $26100 52,200 May purchases June purchases Total disbursements S47,850 3. Complete the following cash budget: April May June Quarter Cash balance, beguming $ 8.000 Add cash collections 56,000 Total cash available 64,000 Less cash disbursements For inventory 47,850 For expenses 13,300 For equipment 1,500 Total cash disbursements 62,650 Excess (deficiency) of cash $ 1,350 Financing Etc 4. Prepare an absorption costing income statement, similar to the one shown in Schedule 9, for the quarter ended lune 30 5. Prepare a balance sheet as of June 30.