The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:

Current assets as of March $31$:

Cash $ $7,400$

Accounts receivable $ $19,600$

Inventory $ $39,000$

Building and equipment, net $ $126,000$

Accounts payable $ $23,175$

Common stock $ $150,000$

Retained earnings $ $18,825$

The gross margin is $25\%$ of sales.

Actual and budgeted sales data:

March $($actual$)$ $ $49,000$

April $ $65,000$

May $ $70,000$

June $ $95,000$

July $ $46,000$

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.

Each month$$s ending inventory should equal $80\%$ of the following month$$s budgeted cost of goods sold.

One$-$half of a month$$s 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, $$2,200$ per month; other expenses $($excluding depreciation$),6\%$ of sales. Assume these expenses are paid monthly. Depreciation is $$945$ per month $($includes depreciation on new assets$).$

Equipment costing $$1,400$ will be purchased for cash in April.

Management would like to maintain a minimum cash balance of at least $$4,000$ at the end of each month. The company has an agreement with a local bank allowing it to borrow in increments of $$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 interest is not compounded. The company would, as f ar as it is able, repay the loan plus accumulated interest at the end of the quarter.CComplete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases.Schedule of Expected Cash Disbursements$-$Merchandise Purchases

$\backslash$table$[[,$April,May,June,Quarter$],[$March purchases,$$,23,175,$$$,23,175],[$April purchases,,$25,875,,25,875,,,51,750],[$May purchases$],[$June purchases$],[$Total disbursements,$$,49,050,$$$,25,875,$$$,$$$,74,925]]$