The following data relate to the operations of Shllow Company, a wholesale distributor of consumer goods Current assets as of March 311 Cash Accounts receivable Inventory Building and equipment, net Accounts payable Coro Stock Retained earnings $2,000 $ 21,600 5.42.000 $ 132,000 325.050 $150,000 3.28,450 a. The gross margin is 25% of sales. b. Actual and budgeted sales data March (actual April May June July 5.54.000 $70,000 $ 75,00 $100,000 $ 51,000 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 1. Monthly expenses are as follows commissions, 12% of sales; rent. $2,700 per month other expenses (excluding depreciation). 6% of sales. Assume that these expenses are paid monthly. Depreciation is $990 per month (includes depreciation on new assets) g. Equipment costing $1,900 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 loon 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 of expected cash disbursements for me 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 1 Required 2 Required 3 Required 4 Required 5 Complete the schedule of expected cash collections Quarter Cash sales Credit sales Total collections Schedule of Expected Cash Collections April May June $ 42.000 21.800 $ 03,000 5 0 $ 0 $ Relea 1 Required 2 > 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 merchandis 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 1 Required 2 Required 3 Required 4 Required 5 Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purcha Quarter 0 0 0 $ 0 Merchandise Purchases Budget April May June Budgeted cost of goods sold $ 52,500 $ 56,250 Add desired ending merchandise inventory 45,000 Total needs 97.500 50.250 Less beginning merchandise inventory 42,000 Required purchases $ 55,500 5 56,250 $ Budgeted cost of goods sold for April = $70.000 sales * 75% = $52,500. Add desired ending inventory for April = 556.250 x 80% - $45.000 Schedule of Expectcash Disbursements-Merchandise Purchases April March purchases $ 25,050 April purchases 27,750 27.750 May purchases June purchases Total disbursements $ 52,800 $ 27.750 $ May June Quarter $ 25,050 55,500 0 $ 80.550 Book 1. Complete the schedule of expected cash collections, 2. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandis 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 1 Required 2 Required 3 Required 4 Required 5 D. Complete the cash budget. (Cash deficiency repayments and interest should be indicated by a minus sign Shilow Company Cash Budget April 5 7.000 03.000 May June Quarter Beginning cash balance Add collections from customers Total cash available 71.500 0 0 0 Less cash disbursements 52,800 15.300 For inventory For expenses For equipment Total cash disbursements 1.000 70.000 O 1,500 0 Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing Ending cash balance 0 0 0 0 1,500 $ 05 0 $ 0 e com pius accumulated interest at 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 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 1 Required 2 Required 3 Required 4 Required 5 Prepare an absorption costing income statement for the quarter ended June 30. Shilaw Company Income Statement For the Quarter Ended June 30 Cost of goods sold 0 0 Selling and administrative expenses 0 O 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 disburser 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 1 Required 2 Required 3 Required 4 Required Prepare a balance sheet as of June 30. Shilow Company Balance Sheet June 30 Assets Current assets: 0 Total current assets $ Total assets Liabilities and Stockholders' Equity Stockholders' equity $ Total liabilities and stockholders' equity