The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods 7.100 $ 11,400 Current assets as of March 321 Accounts receivable Inventory Building and equipment, net Accounts payable stock Retained canines 5 122.400 $ 150, The gross margin is 25% of sales b. Actual and budgeted sales data March (actual) Apr 46,000 $62,000 June 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 halt ot a month 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 Monthly expenses are as follows commissions, 12% of sales, rent $1.900 per month other expenses (excluding depreciation) 6% of sales Assume that these expenses are paid monthly Depreciation is $918 per month (includes depreciation on new assets) o Equipment costing $1100 will be purchased for cash in April 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 Ung the preceding detail Complete me 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 Complete the schedule of expected cash collections. Schedule of Expected Cash Collections April May June Quarter Cash sales $ 37,200 Credit sales 18.400 Total collections 555,600 1 15 points Dereces Required 1 Required 2 Required 3 Required 4 Required Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Morchandise Purchases Budget April May June Quarter Budgeted cost of goods sold $ 46,500 550 250 Add desired ending merchandise inventory 40,200 Total needs 86,700 Less beginning merchandise inventory 37.200 Required purchases $ 49,500 Budgeted cost of goods sold for April $62,000 sales75% = $46,500 Add desired ending Inventory for April - 550 250 80% $40,200 Schedule of Expected Cash Disbursements Merchandise Purchases April May June Quarter March purchases $ 22,050 $ 22,050 April purchases 24,750 24.750 49.500 May purchases June purchases Total disbursements June Quarter Shilow Company Cash Budget April May $ 7.100 55,600 62.700 Beginning cash balance Add collections from customers Total cash available Less cash disbursements For inventory For expenses For equipment Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing Ending cash balance 46.800 13,060 1,100 60.960 1.740 1 Shilow Company Income Statement For the Quarter Ended June 30 25 points Cost of goods sold eBook References Selling and administrative expenses 1 Cart 25 Total current Liabilities and Stockholders' Equity Stadt