The absorption costing income statement is given below: Shilow Company Absorption

Costing Income Statement for the Quarter Ended June 30 Sales (60,000 + 72,000 + 90,000) Cost of
Goods Sold Beginning Inventory Add Purchases Goods Available for Sale Less Ending Inventory Gross
Margin Less Selling and Administrative Expenses Commissions Rent Depreciation Other Expenses Net
Operating Income Less Interest Expense Net Income

The schedule of expected collections is given below:

The balance sheet is given below: Shilow Company Balance Sheet June 30 Assets Liabilities and Equity
Current Assets: Current Liabilities Cash 4,910 Accounts Payable (42,300*50%) 21,150 Accounts
Receivable (90,000*40%) 36,000 Total Current Liabilities 21,150 Inventory 28,800 Total Current Assets
69,710 Stockholder's Equity Capital Stock 150,000 Building and Equipment, Net (120,000 + 1,500 - 2,700)
118,800 Retained Earnings (12,250 + 5,110) 17,360 167,360 Total Assets $188,510 Total Liabilities and
Equity