The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31 Cash Accounts receivable Building and equipment, net Accounts payable Capital stock Retained earnings $8,100 $ 22,400 $ 43,200 129,600 $25.800 $150,000 $ 27,500 a The gross margin is 25% or sales. b. Actual and budgeted sales data: March (actual) April May June July 56,000 72,000 $77,000 $102,000 53,000 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. 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 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, $2.900 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $972 per month (includes depreciation on new assets). g. Equipment costing $2,100 will be purchased for cash in April. h. t 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 5. Prepare a balance sheet as of June 30. Shilow Company Balance Sheet June 30 Assets Current assets: Total current assets Total assets 0 Liabilities and Stockholders' Equity Stockholders' equity: 0 Total liabilities and stockholders' equity 3. Complete the following cash budget: (Borrow and repay in increments of $1,000. Cash deficiency, repayments and interest should be indicated by a minus sign.) Shilow Company Cash Budget April May June Quarter Beginning cash balance Add cash collections Total cash available Less cash disbursements: 8,100 65,600 73,700 For inventory For expenses For equipment 54,300 15,860 2,100 72,260 1.440 Total cash disbursements 0 Excess (deficiency) of cash Financing: Borrowing:s Repayments Interest Total financing Ending cash balance 1,440 $ o $ 4. Prepare an absorption costing income statement for the quarter ended June 30 Shilow Company Income Statement For the Quarter Ended June 30 Cost of goods sold 0 Selling and administrative expenses