The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: $ 7,700 $ 20,800 $ 40,800 129,600 24,300 s 150,000 $ 24,600 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 Hay June July 52,000 $ 68,000 $ 73,000 98,000 $ 49,000 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 invento accounts payable at March 31 are the result of March purchases of inventory. of sales. Assume that these expenses are paid m h. Management would like to maintain 1. Monthy expenses are as folows: commissions, 12% of sales; rent, $2,500 per month; oth er expenses (excluding depreciation), 6% 2 per month (includes depreciation on new assets). g. Equipment costing $1,200 willb ccce of at least $4,000 at the end of each month. The company has pn a minimum cash balance of at least $4,000 at the end of each month. The company has an bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up tb a total loan balance of $20,000. The interest rate on thes compounded. The company would, as far as it is able, repay e loans is 1% per month and for simplicity we win assume that interest is not the loan plus accumulated interest at the end of the quarter 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. Required: Using the preceding data: 1. Complete the schedule of expected cash collections. 2. Complete the merchandise purchases budget and the schedule 3. Complete the cash budget. 4. Prepare an absorption costing income statement for the quarter e 5. Prepare a balance sheet as of June 30 Complete this question by entering your answers in the tabs bek Required 1 Required 2 Required 3 Required 4 Required 5 Complete the schedule of expected cash collections. Schedule of Expected Cash Collections April May June Quarter $ 40,800 $ 43,800 58,800 Cash sales Credit sales Total collections 143.400 20,800 27,200 29,200 77,200 61,600 $ 71,000 88,000 220,600 Required 2 C-920706 doc 1d6ce86c4e0 jpeg repare 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 Required 5 Complete the merchandise purchases budget and the schedule of expected cash disburse Merchandise Purchases Budget June Quarter April May 51,000 $54,750 73,500 179,250 43,800 58,80029,400 94,800 113,550 ,0208,650 40,800 43,800 58,800 54.000 $69,750 44,100$ 167,850 Budgeted cost of goods sold Add desired endtng merchandise inventory 29,400 Total needs 40,800 Less beginning merchandise inventory Required purchases Budgeted cost of goods sold for April-S68.000 sales x 75% SS 1,000. Add desired endingnventory for April S54 ,750 80% $43,800 Schedule of Expected Cash Disbursements-Merchandise Purchases AprilMay $ 24,300 June Quarter March purchases April purchases May purchases June purchases $ 24,300 54,000 69,750 22,050 27,000 27,000 34.875 34,875 22,050 Total disbursements $51,300 $61,875 $ 56,925$ 170,100 Required 1 Required 3>
