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 receivable at March 31 are a result of March credit sales a Each month's ending imventory should equal 80% of the following month's budgeted cost of goods sold. e One-haif 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, $3,500 per month; other expenses (excluding depreciation). 6% of sales Assume that these expenses are paid monthly Depreciation is $873 per month (includes depreciation on new assets) 9. Equipment costing $2.700 wilf be purchased for cash in April. h. Manajement 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% pet 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 Required: Using the preceding datai 2 Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. 1 Complete the schedule of expected cash collections. 3. Complete the cash budget 4. Prepare an absorption costing income statement fot the quarter encled 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. Sehriduli of Expectad Cash Distursenents - Merehandise Purchases \begin{tabular}{l} Illapy eiro at \\ Cost of goodin sold \\ \hline \end{tabular} S Required 4 Rincuuired 5