Question 2: Completing a Master Budget (Problem 10-25, page 530) (60 marks) The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: $8,000 $20,000 S36,000 $120,000 S21,750 $150,000 S12,250 Cash Accounts receivable Inventory Buildings and equipmen, net Accounts payable Capital stock Retained earnings a. The gross margin is 25% of sales. b. Actual and budgeted sales data March (actual) 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