$2$

Hillyard Company, an office supplies specialty store, gathered the following information to prepare its master budget for the first quarter of the year:

a$.$ As of December $31($the end of the prior quarter$),$ the company's general ledger showed the following account balances:

eBook

$\backslash$table$[[,$Debits,Credits$],[$Cash$,$$$54,000,],[$Accounts receivable,$211,200,],[$Inventory$,59,850,],[$Buildings and equipment $($net$),364,000,],[$Accounts payable,,$$89,325$