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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.

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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 budgeted sales data: c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts 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 fol 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 of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (includes depreciation oi g. Equipment costing $1,500 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 cor agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of eachi 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 d 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. Complete the schedule of expected cash collections. Complete the merchandise purchases budget and the schedule of expected cash disbursements Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Prepare an absorption costing income statement for the quarter ended June 30 . Predare a patance snepr as nr 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 budgeted sales data: c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts 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 fol 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 of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (includes depreciation oi g. Equipment costing $1,500 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 cor agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of eachi 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 d 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. Complete the schedule of expected cash collections. Complete the merchandise purchases budget and the schedule of expected cash disbursements Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Prepare an absorption costing income statement for the quarter ended June 30 . Predare a patance snepr as nr

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