The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 8,800 Accounts receivable $ 25,200 Inventory $ 47,400 Building and equipment, net $ 114,000 Accounts payable $ 28,425 Common stock $ 150,000 Retained earnings $ 16,975 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 63,000 April $ 79,000 May $ 84,000 June $ 109,000 July $ 60,000 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. Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold. 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. Monthly expenses are as follows: commissions, 12% of sales; rent, $3,600 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $855 per month (includes depreciation on new assets). Equipment costing $2,800 will be purchased for cash in April. 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. 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 i

1. The computation of the schedule of expected cash collections for Shilow Company is as follows:

                                             April           May          June           Total

Sales                                $79,000     $84,000   $60,000     $223,000

Cash Sales                      $47,400     $50,400    $65,400     $163,200

40% credit sales              25,200        31,600       33,600         90,400

Total cash collections $72,600     $82,000    $99,000    $253,600

2. The completion of the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases for Shilow Company are as follows:

                                                April           May          June           Total

Sales                                   $79,000     $84,000   $109,000      $223,000

Cost of goods sold (75%)    59,250       63,000         81,750        204,000

Ending inventory                 50,400       65,400        36,000          36,000

Goods available for sale $109,650   $125,400      $117,750

Beginning inventory            47,400      50,400        65,400          47,400

Purchases                         $62,250    $75,000      $52,350      $189,600

                                              April           May             June             Total

Purchases                         $62,250    $75,000       $52,350      $189,600

50% month of purchase    $31,125    $37,500        $26,175        $94,800

50% ffg month                    28,425        31,125         37,500          97,050

Total cash payments      $59,550   $68,625      $63,675       $191,850

3. The completion of the cash budget for Shilow Company is as follows:

                                                 April              May            June

Beginning cash balance       $8,800         $4,030       $4,285

Total cash receipts                72,600        82,000       99,000

Loan                                         8,000          2,000                    

Total cash available           $80,600      $88,030    $103,285

Total cash payments:

Purchases disbursements  $59,550     $68,625     $63,675

Sales commission                   9,480        10,080        13,080

Other expenses                      4,740          5,040         6,540

Equipment                              2,800                                      

Total cash payments         $76,570      $83,745     $83,295

Loan repayment with interest                                     10,180

Cash balance                      $4,030        $4,285        $9,810

Minimum cash balance      $4,000        $4,000      $4,000

4. The preparation of the absorption costing income statement for Shilow Company is as follows:

                                              April           May           June    

Sales                                $79,000     $84,000    $109,000

Cost of goods sold (75%) 59,250       63,000         81,750

Gross margin                   $19,750      $21,000     $27,250

Expenses:

Sales commission            $9,480      $10,080     $13,080

Other expenses                 4,740          5,040        6,540

Interest on loan                                                           180

Depreciation                        855             855            855

Total expenses             $15,075      $15,975     $20,655

Net Income                    $4,675        $5,025      $6,595

Current assets as of March 31:

Cash $ 8,800

Accounts receivable $ 25,200

Inventory $ 47,400

Building and equipment, net $ 114,000

Accounts payable $ 28,425

Common stock $ 150,000

Retained earnings $ 16,975

Sales data                 Actual      Budgeted      Cash        Credit

March (actual)       $ 63,000                         $37,800    $25,200

April                                           $ 79,000    $47,400     $31,600

May                                           $ 84,000      50,400       33,600

June                                        $ 109,000      65,400      43,600

July                                          $ 60,000       36,000     24,000

Sales:

60% cash

40% credit

Credit sales are collected in the month following the sale.

Interest on Loan = $180 ($8,000 x 1% + $10,000 x 1%)

Learn more about preparing budgeted financial statements at brainly.com/question/24498019

Microsoft receives a cash payment in advance for cloud services is an example of
a. prepaid expense
b. accrued revenue
c. unearned revenue
d. accrued expense

On December 31st a calendar year corporation
owes employees unpaid payroll
a. prepaid expense
b. accrued revenue
c. unearned revenue
d. accrued expense

Matching: Match each term in Column A with its definition in
Column B.
Column B
a. covers losses due to windstorms, riots, or
plane crashes
ance
Column A
1. insurance
2. risks
b. pays all or parts of hospital and medical bills
3. beneficiary
c. automobile insurance that requires the insur-
4. premium
5. cash value
ance company to pay damages no matter
6. policy
who was responsible
d. the chances that we may suffer harm or loss
7. no-fault insur-
e. a way of protecting ourselves and others
8. personal liabil- against financial loss
ity insurance
f. person who receives insurance money in the
9. extended cover- event of the policyholder's death
age
g. the contract between the insured and the in.
10. health insurance surance company
h. a sum of money paid periodically to the insur-
ance company
i. the dollar value of a life insurance policy if
turned in or used to borrow from
j. provides protection against claims arising
from injury on a homeowner's property

"Davcher, Inc. is considering a project for next year, which will cost $5 million. Davcher plans to use the following combination of debt and equity to finance the investment. Issue $1.5 million of 10-year bonds at a price of 101, with a coupon/contract rate of 4%, and flotation costs of 2% of par. Use $3.5 million of funds generated from retained earnings. The equity market is expected to earn 8%. U.S. Treasury bonds are currently yielding 3%. The beta coefficient for Davcher, Inc. is estimated to be .70. Davcher is subject to an effective corporate income tax rate of 30 percent. (8 points) " Compute Davcher's expected rate of return using the Capital Asset Pricing Model (CAPM).

scarcity forces people to

Which of the following sentences uses the term ration correctly?
O The government decided to ration workers' pay, so everyone received a small pay increase.
O The ration was elected to a second term in office.
O Because we had so much extra food, we decided to ration it by giving it away to everyone we met.
O We had to ration the food to make it last the whole week.

What is the purpose of long-term disability insurance?
A. To replace a portion of a person's income if that person cannot
work
B. To provide a guaranteed loan to pay expenses until a person is
able to work again
C. To provide financial support for loved ones after a person dies
O D. To pay medical expenses if a person is hospitalized for an illness
or injury

Which of these would Congress look to do during a recession, as it pertains to fiscal policy?
a. Raise taxes
b. Raise government spending
c. Decrease the discount rate
d. Print more money

The fixed budget indicates direct labor costs of $27,500. Actual direct labor costs were $27,000. The variance is:

Distinguish between economic and accounting profit

The chair of the board of directors says, “There is a 50 percent chance this company will earn a profit, a 30 percent chance it will break even, and a 20 percent chance it will lose money next quarter.” a. Use an addition rule to find the probability the company will not lose money next quarter. b. Use the complement rule to find the probability it will not lose money next quarter

are retail businesses where customers
come to your place of business to purchase a product.
is a section of land that is zoned

The market basket used to calculate the CPI is revised monthly to more accurately depict consumers' choices. The price data for the CPI are collected every month." Are the previous sentences true or false?

Do imports threaten the jobs of people in the importing country?​

The journal entry to record the issuance of a note to a creditor to satisfy an account payable created earlier would include a __________ to __________.

a. credit; Accounts Payable
b. credit; Notes Payable
c. debit; Notes Payable
d. debit; Inventory

roles of private sectors in tourism in Africa

What is one of the primary concerns of socially responsible consumers?
A. Customer service
B. Low price
C. Socialism
D. Sustainability

In which situation would a person pay a higher property tax than he or she did
the year before?
O A. The value of the person's home increased.
B. The amount the person spent on electronics increased.
O c. The number of dependents the person had increased.
O D. The salary the person earned increased.
Helppp

Which of the following is NOT a common way businesses pay employees?

Type the correct answer in the box. Spell all words correctly.
Kwa Lee works as the production manager in a manufacturing company that makes microwave ovens. He wants the products to meet the
generally applicable standards related to environment radiation.
Which law must Kwa Lee follow related to the products his company manufactures?
Kwa Lee and his company must adhere to the standards in the
Blank

The Americans with Disabilities Act requires that employers make reasonable accommodations for individuals with disabilities. How might this requirement affect law enforcement officers and firefighters

What does it mean when earned value is above planned value?

If a contingent liability is probable and the amount of the liability can be reasonably estimated, it is

a. not recorded but should be disclosed.
b. recorded and disclosed.
c. recorded only.
d. not recorded and not disclosed.

What is the difference between carriage forward and carriage paid?

PLEASE HELP WITH THIS ECONOMICS ASSIGNMENT
This lesson examines many concepts, including opportunity costs. For this discussion, you will write a brief scenario that describes opportunity costs.

For example:

After working weekends for the past three years, Janet has saved $7,000. Her goal is to buy a new 90-inch HD television. Before she buys the TV, she is offered an opportunity to travel with her best friend to Australia and New Zealand. The trip will cost about $7,000.

Janet’s opportunity costs are either missing out on purchasing a new television (if she chooses to travel) or forgoing her plan to purchase a television (if she travels abroad).

Now, write your own scenario that illustrates opportunity costs.

Hector a Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a​ large, multinational corporation with offices around the world. She has been told by her company that she will be transferred to a new location every three years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make​ $8,000 in gross monthly income and pay​ 40% in taxes and withholdings every month. Between them they have monthly payment of​ $400 in student loans and​ $700 in car​ loans, and their credit cards payments average​ $450 per month. They currently lease a luxury condo for​ $1,400 per month. They travel to Cancun every Christmas. Since they both work a lot of​ hours, they eat out at restaurants for most meals. They currently have nothing in savings but​ Hector's grandparents have said they will give them a​ 20% down payment for the new home. Assuming a PITI of approximately​ $1,300 for the​ townhouse, will they be approved for a​ mortgage?

Which of the following economic systems best describes the economy of the United States?
O Marxism
O command
o socialism
O free-market capitalism
closed

On December 31, 2015, Sarasota Co. performed environmental consulting services for Hayden Co. Hayden was short of cash, and Sarasota Co. agreed to accept a $160,000 zero-interest-bearing note due December 31, 2017, as payment in full. Hayden is somewhat of a credit risk and typically borrows funds at a rate of 11%. Sarasota is much more creditworthy and has various lines of credit at 6%. Required:
a. Prepare the journal entry to record the transaction of December 31, 2015, for Tran Co. b. Assuming Tran Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2016. c. Assuming Tran Co.'s fiscal year-end is December 31, prepare the journal entry for December 31, 2017.

Ely Roofing Contractors enters into a lease for the use of new equipment. The term of the lease is three years. The annual lease amount is $6,000. The present value of the lease payments is $50,000. Ely Roofing estimates the economic life of the equipment to be five years. The lease is considered a finance lease. The journal entry to record the initial transaction will include a

why do the regular meetings between a portfolio manager and his or her team of analysts take place in what is sometimes called "the war room"?

a.
Which is the best way of getting feedback from a performance review?
Take good notes
b. Ask good questions
Arrive unprepared
d. Discuss the review with friends
c.
Please select the best answer from the choices provided
A
ОВ
Ο C
OD