The key information and instructions related to the project is listed below: The following data relate to the operations of Shiloh Company, a wholesale distributor of consumer goods: Current assets as of March 31: 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).. $8,000 $20,000 $36,000 $120,000 $21,750 $150,000 $12,250 April.. May. June July $50,000 $60,000 $72,000 $90,000 $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 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. f. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (includes depreciation on new assets). g. Equipment costing $1,500 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 loan plus accumulated interest at the end of the quarter. Using the data provided above, use the Excel Template provided to prepare the following budget schedules: 1. Sales Budget (Merely enter the sales data provided.) 2. Schedule of Expected Cash Collections 3. Merchandise Purchases Budget 4. Schedule of Expected Cash Disbursements - Merchandise Purchases 5. Schedule of Expected Cash Disbursements - Selling and Administrative Expenses 6. Cash Budget Please note that Excel formulas or functions should be used throughout the budget wherever possible, instead of entering numbers into each cell. 1 2 3 4 5 6 7 8 9 Cash Sales 10 Credit Sales 11 Total Collections 12 13 Managerial Accounting - Course Project Budgeted Sales March April May June July Schedule of Expected Cash Collections April $ 36,000 20,000 May $ 56,000 Merchandise Purchases Budget June Quarter 14 April May June Quarter 15 Budgeted Cost of Goods Sold $ 45,000 17 Total Needs 16 add: Desired Ending Inventory 18 less: Beginning Inventory 19 Required Purchases 43,200 88,200 36,000 $ 52,200 20 21 22 Schedule of Expected Cash Disbursements - Merchandise Purchaes 23 April May June Quarter 24 March Purchases $ 21,750 $ 21,750 25 April Purchases 26,100 26,100 52,200 26 May Purchases 27 June Purchases 28 Total Disbursements $ 47,850 29 30 Schedule of Expected Cash Disbursements - Selling & Administrative 31 April May June Quarter 32 Commissions $ 7,200 33 Rent 2,500 34 Other Expenses 3,600 35 Total Disbursements $ 13,300 36 37 Cash Budget 38 April May June Quarter 39 Cash Balance Beginning $ 8,000 40 Add: Cash Collections 56,000 41 Total Cash Available 64,000 42 43 Less Cash Disbursements 44 For Inventory 47,850 45 For Expenses 13,300 46 For Equipment 1,500 47 Total Cash Disbursements 62,650 48 Excess (deficiency) of Cash 1,350 49 Borrowing 50 Repayments 51 Interest Paid 52 Ending Cash Balance