The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: $9,200 $ 26,800 $ 49,800 $ 104,400 $ 29,925 $ 150,000 $ 10,275 Cash Accounts receivable Inventory Building and equipment, net Accounts payable Common stock Retained earnings a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 67,000 $ 83,000 $ 88,000 $ 113,000 $ 64,000 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 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, $4,000 per month, other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $783 per month (includes depreciation on new assets) g. Equipment costing $3,200 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 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 Required: Using the preceding data: 1. Complete the following schedule: 2. Complete the following: 3. Complete the following 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. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the following schedule: Schedule of Expected Cash Collections April $ 49,800 May June Quarter Cash sales Credit sales Total collections 26,800 $ 76,600$ 0 Required 1 Required 2 Required 3 Required 4 Required 5 Complete the following: Merchandise Purchases Budget April $ 62,250$ 66,000 May June Quarter Budgeted cost of goods sold Add desired ending merchandise inventory Total needs Less beginning merchandise inventory Required purchases Budgeted cost of goods sold for April-$83,000 sales 75%-$62,250. Add desired ending inventory for April-$66,000 80% = $52,800. 52,800 115,050 49,800 66,000 0 0 $ 65,250$ 66,000$ 0 Schedule of Expected Cash Disbursements-Merchandise Purchases April $ 29,925 May June Quarter $ 29,925 March purchases April purchases May purchases June purchases Total disbursements 32,625 32,625 65,250 $ 62,550$ 32,625 $ 0$ 95,175 Required 1 Required 4Required 5 Complete the following cash budget: (Cash deficiency, repayments and interest should be in Shilow Company Cash Budget April May June Quarter Beginning cash balance Add collections from customers Total cash available Less cash disbursements 9,200 76,600 85,800 62,550 18,940 3,200 84,690 1,110 For inventory For expenses For equipment Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balance 1,110$ Required 1Required 2 Required 3 Required 4Required 5 Prepare an absorption costing income statement for the quarter ended J Shilow Company Income Statement For the Quarter Ended June 30 Cost of goods sold: 0 0 Selling and administrative expenses: 0 Prepare a balance sheet as of June 30. Shilow Company Balance Sheet June 30 Assets Current assets: Total current assets 0) Total assets 0 Liabilities and Stockholders' Equity Stockholders' equity: 0) Total liabilities and stockholders' equity 0