Total cash disbursements 62650 73960 72250 20886

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Total cash disbursements ......... 62,650 * 73,960 72,250 208,86 0 Excess (deficiency) of cash available over disbursements ......... 1,350 * (2,410 ) 15,140 5,140 Financing: Borrowings .............. 3,000 7,000 0 10,000 Repayments ............ 0 0 (10,000) (10,000) Interest ($3,000 × 1% × 3 + $7,000 × 1% × 2) ............. 0 0 (230 ) (230 ) Total financing ............ 3,000 7,000 (10,230 ) (230 ) Ending cash balance.. $ 4,350 $ 4,590 $ 4,910 $ 4,910 * Given.
Problem 7-27A (continued) 4. Shilow Company Income Statement For the Quarter Ended June 30 Sales ($60,000 + $72,000 + $90,000) $222,00 0 Cost of goods sold: Beginning inventory (Given) ............. $ 36,000 Add purchases (Part 2) ...................... 159,30 0 Goods available for sale .................... 195,300 Ending inventory (Part 2) .................. 28,80 0 166,500 * Gross margin ........................................ 55,500 Selling and administrative expenses: Commissions (12% of sales) ............. 26,640 Rent ($2,500 × 3) .............................. 7,500 Depreciation ($900 × 3) .................... 2,700 Other expenses (6% of sales) ........... 13,32 0 50,160 Net operating income .......................... 5,340 Interest expense (Part 3) ..................... 230 Net income ........................................... $ 5,110 * A simpler computation would be: $222,000 × 75% = $166,500.
Problem 7-27A (continued) 5. Shilow Company Balance Sheet June 30 Assets Current assets: Cash (Part 4) .......................................................... $ 4,910 Accounts receivable ($90,000 × 40%) .................. 36,000 Inventory (Part 2) ................................................... 28,800 Total current assets .................................................. 69,710 Building and equipment—net ($120,000 + $1,500 – $2,700) ............................... 118,800 Total assets ............................................................... $188,51 0 Liabilities and Stockholders’ Equity Accounts payable (Part 2: $42,300 × 50%) .................................................... $ 21,15 0 Stockholders’ equity: Common stock (Given) ........................ $150,00 0 Retained earnings* .............................. 17,360 167,36 0 Total liabilities and stockholders’ equity .................................................. $188,51 0 * Beginning retained earnings ............... $12,250 Add net income ................................... 5,110 Ending retained earnings .................... $17,360

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