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.

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 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, $$2,300$ per month; other expenses $($excluding depreciation$),6\%$

of sales. Assume that these expenses are paid monthly. Depreciation is $$954$ per month $($includes depreciation on new assets$).$

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 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 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 disbursements for merchandise purchases.

$3.$ 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 $30.$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.

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 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, $$2,300$ per month; other expenses $($excluding depreciation$),6\%$

of sales. Assume that these expenses are paid monthly. Depreciation is $$954$ per month $($includes depreciation on new assets$).$

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 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

compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.$\backslash$table$[[$Shilow Company$],[$Cash Budget$],[,$April,May,June,Quarter$],[$Beginning cash balance,$$,7,500,,,],[$Add collections from customers,$59,600,,,],[$Total cash available,$67,100,0,0,0],[$Less cash disbursements:$],[$For inventory,$49,800,,,],[$For expenses,$14,180,,,],[$For equipment,$1,500,,,],[$Total cash disbursements,$65,480,0,0,0],[$Excess $($deficiency$)$ of cash available over disbursements,$1,620,0,0,0],[$Financing:$],[$Borrowings$],[$Repayments$],[$Interest$],[$Total financing,$0,0,0,0],[$Ending cash balance,$$,1,620,0,0,$$