The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: a. The gross margin is 25% of sales. b. Actual and buegeted sales deta. 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 s result of March credit soles. d. Each month's ending inventory should ecual 80% of the following month's budgeted cost of goods sold. e. One-half of a month's inventory purehases is paid foc in the month of purchase, the other haif is poid for in the following month. The occounts payable at March 31 are the result of March purchases of inventory. f, Monthly expenses are as follows: commissions, 12% of sales; rent, $2.600 per month; other expenses (excluding depreciation), 6% of sales. Assume thot these expenses are paid monthly. Depreciation is $981 per month (includes depreciation on new assets): c. Sales are 60% for cash and 40% on credit. Credit sales are collected. in the month following sale. The accounts receivable at Morch 31 are o result of March crectit sales d. Esch months ending itventery should equel B0h of the following month's budgeted cost of goods soid. e. One.half of a month's inventory purchases is paid for in the month of purchase, the other half is pe cl for in the following thonth. The accounts poyable at Moreh 31 are the result of March purchases of inventory: C. Menthly expenses are as follows: coamissions, 12.4 of sales; rent. 52.600 per month; other expenses (excluding depreciation). 6 . of selet. Assume that these expenses are poid monthly. Depreciation is 3981 per menth (includes depreciation on new sssets). a. Equipment costing 51.800 will be purchased for cesh in April h. Management would like to mbintain a minimum cash balance of at least 34.000 nt the end of each month. The compary has an agreement with a local bank that allows the company to borrow in increments of 51000 at the beginning of each month, up to ot total loan balance of $20.000. The interest rate on these loans is be poc ancoth and for simplicity we wilf assume that intelest is not compounded. The company would, as for as it is able, repay the loan plus occumulated interest at the end of the quarter. Required. Using the preceding date: 1. Complete the schedule of expected cash collections. 2. Complete the merchandise purchases budget and the schecule of expected cash disbursements for merchandise purchases. 3. Compiete the cosh butiget. 4. Prepart an absorption costing income statement for the querter ended June 30 . 5. Prepare o balance sheet as of June 30 . (x) Answer is not complete