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The following data relate to the operations of Shllow 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 recelvable at March 31 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 Imventory 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. t. Monthly expenses are as follows: commissions, 12% of sales; rent, $1,900 per month; other expenses (excluding depreclation), 6% of sales. Assume that these expenses are paid monthly. Depreclation is $918 per month (includes depreclation on new assets). 9. Equpment costing $1,100 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 I\% 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 merchandlse 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 . Complete this question by entering your answers in the tabs below. Complete the schedule of expected cash collections. Complete this question by entering your answers in the tabs below. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Complete this question by entering your answers in the tabs below. Complete the cash budget. (Cash deficlency, repayments and interest should be indicated by a minus sign.) Complete this question by entering your answers in the tabs below. Prepare an absorption costing income statement for the quarter ended June 30 . Complete this question by entering your answers in the tabs below. Prepare a balance sheet as of June 30 . Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following Information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units) The selling price of the beach umbrellas is $14 per unit b. All sales are on account. Based on past experience, sales are collected in the following pattern: 32% in the month of sale 65% in the month following 5% uncollectible Sales for June totaled $504,000 c. The company maintains tinished goods inventorles equal to 15% of the following month's sales. This requirement wil be met at the end of June. d. Each beach umbrella requires 4 feet of Gliden, a materlal that is sometimes hard to acqulre. Therefore, the company requires that the ending inventory of Gliden be equal to 50 of the following month's production needs. The Inwentory of Gliden on hand at the beginning and end of the quarter wil be: June 3091,550 feet September 30 ? feet e. Gllden costs $0.60 per foot. One-half of a month's purchases of Gllden is paid for in the month of purchase; the remainder is pald for in the following month. The accounts payable on July 1 for purchases of Giden during June will be $49,290 Required: 1. Caiculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collectlons, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced In July, August, September, and October. 4. Calculate the quantity of Gliden (In feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw materlal (Gllden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements tor raw materlal (Gilden) purchases, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Calculate the estimated sales, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Calculate the expected cash collections, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. Complete this question by entering your answers in the tabs below. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter. The following data relate to the operations of Shllow 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 recelvable at March 31 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 Imventory 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. t. Monthly expenses are as follows: commissions, 12% of sales; rent, $1,900 per month; other expenses (excluding depreclation), 6% of sales. Assume that these expenses are paid monthly. Depreclation is $918 per month (includes depreclation on new assets). 9. Equpment costing $1,100 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 I\% 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 merchandlse 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 . Complete this question by entering your answers in the tabs below. Complete the schedule of expected cash collections. Complete this question by entering your answers in the tabs below. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Complete this question by entering your answers in the tabs below. Complete the cash budget. (Cash deficlency, repayments and interest should be indicated by a minus sign.) Complete this question by entering your answers in the tabs below. Prepare an absorption costing income statement for the quarter ended June 30 . Complete this question by entering your answers in the tabs below. Prepare a balance sheet as of June 30 . Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following Information to assist in the budget preparation: a. The Marketing Department has estimated sales as follows for the remainder of the year (in units) The selling price of the beach umbrellas is $14 per unit b. All sales are on account. Based on past experience, sales are collected in the following pattern: 32% in the month of sale 65% in the month following 5% uncollectible Sales for June totaled $504,000 c. The company maintains tinished goods inventorles equal to 15% of the following month's sales. This requirement wil be met at the end of June. d. Each beach umbrella requires 4 feet of Gliden, a materlal that is sometimes hard to acqulre. Therefore, the company requires that the ending inventory of Gliden be equal to 50 of the following month's production needs. The Inwentory of Gliden on hand at the beginning and end of the quarter wil be: June 3091,550 feet September 30 ? feet e. Gllden costs $0.60 per foot. One-half of a month's purchases of Gllden is paid for in the month of purchase; the remainder is pald for in the following month. The accounts payable on July 1 for purchases of Giden during June will be $49,290 Required: 1. Caiculate the estimated sales, by month and in total, for the third quarter. 2. Calculate the expected cash collectlons, by month and in total, for the third quarter. 3. Calculate the estimated quantity of beach umbrellas that need to be produced In July, August, September, and October. 4. Calculate the quantity of Gliden (In feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw materlal (Gllden) purchases by month and in total, for the third quarter. 6. Calculate the expected cash disbursements tor raw materlal (Gilden) purchases, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Calculate the estimated sales, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Calculate the expected cash collections, by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October. Complete this question by entering your answers in the tabs below. 4. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter. 5. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter. Complete this question by entering your answers in the tabs below. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter

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