PROBLEM 9-27 Completing a Master Budget LO9-2, LO9-4, LO9-7, LO9-8, LO9-9, LO9-10 The following data relate to the operations of Shilow Company, a wholesale distributor of con sumer goods: Current assets as of March 31 . . $8,000 ..$20,000 $36,000 Cash Inventory $12,250 The gross margin is 25% of sales. Actual and budgeted sales data: a. b. May June. July $72,000 $48,000 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, S2.500 per month, other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid mon hly. Depreciation is $900 per month (includes depreciation on new assets) c. d e. f. 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 t