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 $ 19,600 $ 39,000 126,000 $ 23,175 150,000 $ 18,825 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 $ 49,000 $ 65,000 $ 70,000 $ 95,000 $ 46,000 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 f. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,200 per month; other expenses (excluding depreciation), 6% g. Equipment costing $1,400 will be purchased for cash in April accounts payable at March 31 are the result of March purchases of inventory of sales. Assume that these expenses are paid monthly. Depreciation is $945 per month (includes depreciation on new assets). 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: . 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. Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Required 4 Required5 Complete the schedule of expected cash collections. Schedule of Expected Cash Collections April May June Quarter $ 39,000 19,600 Total collections $58,600 Cash sales Credit sales Complete this question by entering your answers in the tabs below Required 1Required 2Required 3 Required 4 Required 5 Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Merchandise Purchases Budget April May June Quarter $48,750S 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-$65,000 sales x 75%-$48,750. Add desired ending inventory for April-$52.500 80%-$42,000 52,500 42,000 90,750 39,000 $51,750 Schedule of Expected Cash Disbursemen dise Purchases April May $23,175 June Quarter March purchases April purchases May purchases June purchases Total disbursements S 23,175 25,875 25,875 51,750 Required 1 Required 3> Complete this question by entering your answers in the tabs below Required 1 Required 2Required 3Required 4 Required 5 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Shilow Company Cash Budget April May June Quarter Beginning cash balance Add collections from customers Total cash available Less cash disbursements: S 7.400 58,600 66,000 For inventory 49,050 13,900 1.400 64,350 1,650 For expenses For equipment Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Interest Total financing Ending cash balance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4Required 5 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: Selling and administrative expenses: Required 3 Required 5> Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3 Required 4Required 5 Prepare a balance sheet as of June 30. Shilow Company Balance Sheet June 30 Assets Current assets Total current assets Total assets Liabilities and Stockholders' Equity Stockholders' equity: Total liabilities and stockholders' equity Required 4 Required 5