The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods Current assets as of March 11 Cash Accounts receivable Inventory Building and equipment, net Accounts payable Connon stock Retained earnings 3 7.600 $ 20,40 $ 40,200 $ 128,400 $ 23,925 $ 150,000 $ 22,675 a. The gross margin is 25% of sales b. Actual and budgeted sales data: March (actual) April May June July $ 51,000 $67.000 $72,000 $97.000 $ 48,000 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 cales d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold, o One-half of a month's inventory purchase 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 cales, cont. $2,400 per month other expenses (excluding depreciation, 6% of sales Assume that these expenses are paid monthly, Depreciation is $963 per month andudes depreciation on now accota) g Equipment costing $1600 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 $1000 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 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 m 6. Prepare a balance sheet as of June 30. Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Required Required Complete the schedule of expected cash collections. Schedule of Expected Cash Collections April May June Quarter Cash sales $40.200 Credit sales 20,400 Total collections $ 60.000 Required 2 > Complete this question by entering your answers in the tabs below. Required Required 2 Required Required Requires Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise pure Quarter ce Merchandise Purchases Budget April May June Budgeted cost of goods sold $50,250 54,000 Add desired ending merchandise inventory 43.200 Total needs 93,450 Less beginning merchandise inventory 40,200 Required purchases $53,250 Budgeted cost of goods sold for April = $87.000 sales x 75%-$50,250. Add desired ending inventory for April - $54,000 X 80% = $43,200 Schedule of Expected Cash Disbursements-Merchandise Purchases April May June March purchases 523,025 April purchases 28.625 26,625 May purchases Quarter 23.925 53,250 June purchases Total disbursements (Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required N Required Required 5 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus Shilow Company Cash Budget April May S 7,600 60,600 June Quarter 68,200 Beginning cash balance Add collections from customers Total cash available Less cash disbursements For inventory For expenses For equipment Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments 50,550 14,460 1,800 66,610 1.590 Interest Total financing Ending cash balance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Required 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 1 Required 2 Required 3 Required 4 Required 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