The key information and instructions related to the project is listed below: The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash . .. $8,000 Accounts receivable . $20,000 Inventory . $36,000 Building and equipment, net. $120,000 Accounts payable $21,750 Common stock. $150,000 Retained earnings . $12,250 a. The gross margin is 25% of sales b. Actual and budgeted sales data: March (actual) . ..... . . . $50,000 April . . $60,000 May . . . $72,000 June . $90,000 July . .. $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.File Home Insert Draw Page Layout Formulas Data Review Vie 12 B I v v Av ... B52 - X V fx F G ' H M Managerial Accounting - Course Project N Budgeted Sales March April May June July Schedule of Expected Cash Collections 8 April May June Quarter 9 Cash Sales $ 36,000 10 Credit Sales 20,000 11 Total Collections 56,000 12 13 Merchandise Purchases Budget 14 April May June Quarter 15 Budgeted Cost of Goods Sold $ 45,000 16 add: Desired Ending Inventory 43,200 17 Total Needs 88,200 18 less: Beginning Inventory 36,000 19 Required Purchases 52,200 20 21 22 Schedule of Expected Cash Disbursements - Merchandise Purchaes 23 April May June Quarter 24 March Purchases S 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 2 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 53 54 55 56 57 58 59 60 61 62 63 65 66 67 68 69 70 71 Sheet1