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 3t are a result of March credit sales d 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 irventory purchases is paid for in the month of purchase, the other half is paid for in the following month the accounts pilyable at March at are the result of March purchases of inventory 1. Monthy expenses are as follows commissions, 12% of sales, rent. 54.200 per month, other expenses (excludirig depreciation). 6% of sales Assume that these expenses are paid monthly Depreciation is $747 per month (includes depreciation on new assets) 2. Equipment costing $3,400 will be purchased for cash in April he 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 compony to borrow in increments of $1.000 at the begincing of each morth, up to a lotat loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicily we will assume that interest is not compounded. The company would, as faf as it is able, repay the loan plus accumulated interent at the end of the quarter Reculred: Using the preceding data 1 Complete the schedule of expected cath collections 2. Complete the merchandise purchaves budget and the schedile of expecied coshdisbarsernents formeichandise purchases 3. Compiete the cesh budget 4. Prepare an absorption cosung income statemient for the quarter ended June 30 5. Preoare 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-thalf 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. 1 Monthly expenses are as follows; commissions, 12\% of sales; rent, $4,200 per month; other expenses (excluding depreciation), 6% of sales Assume that these expenses are paid monthly. Depreciation is $747 per month (includes depreciation or new assets) 9. Equipment costing $3,400 will be purchased for cash in April. h. Management would tike 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 ioan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we with 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: Uising the preceding data: 1. Complere 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 casts budget