The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: a. The gross mergin is 25% of sales. b. Actual and budgeted sales data: c. Seles are 60% for cash and 40% on crediL. Credit sales are collected in the month following sale. The accounts recelvable at March 31 are a resuit of March credit sales. d. Each monthy ending inventory should equal 80% of the following month's budgeted cost of goods sold. 6. One-half of a month's inventory purchases is paid for in the month of purchase; the other haif is pald 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, $2,500 per month, other expenses (excluding depreciation), 6%. of sales. Assume that these expenses are poid monthly. Depreciation is $972 per month (includes depreciation on new assets) 9. Equipment costing $1,700 will be purchased for cash in April. h. Management would like to maintain a minimum cash balance of at least 54,000 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 15 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 ot 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 cosh budget. 4. Prepare an absorption costing income statement for the quarter ended June 30 : 5. Prepare a balance sheet as of June 30