The following data relate to the operations of Shilow Company

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The following data relate to the operations of Shilow Company, a wholesaledistributor of consumer goods: Current assets as of March 31:Cash $ 8,800Accounts receivable $ 25,200Inventory $ 47,400Building and equipment,net $ 114,000Accounts payable $ 28,425Capital stock $ 150,000Retained earnings $ 16,975a. The gross margin is 25% of sales.b. Actual and budgeted sales data:March (actual) $63,000 April $79,000 May $84,000 June $109,000 July $60,000c. Sales are 60% for cash and 40% on credit. Credit sales are collected in themonth following sale. The accounts receivable at March 31 are a result of Marchcredit sales.d. Each month’s ending inventory should equal 80% of the following month’sbudgeted 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 31are the result of March purchases of inventory.
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Term
Summer
Professor
NoProfessor
Tags
Balance Sheet, Generally Accepted Accounting Principles, gross margin, Shilow Company, following data relate

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