4. Prepare an absorption costing income statement for the quarter ended June 30.
5. Prepare a balance sheet as of June 30.
nts receivable at March 31 are a result of March credit sales.the following month. The accounts payable at March 31 are the result of March purchases of inventory.ding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per montThe company has an agreement with a local bank that allows the company to borrow in increments of $1,000
th (includes depreciation on new assets).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 i
it is able, repay the loan plus accumulated interest at the end of the quarter.