a. As of December 31 (the end of the prior quarter), the company's general ledger showed the following account balances: Cash Accounts receivable Inventory Buildings and equipment (net), Accounts payable Common stock Retained earnings Debits Credits $ 53, eee 210, 4ee 59,7ee 363,000 $ 89,825 see, eee 97,075 $ 686,18 $ 686,100 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) January February March April $ 263,000 $ 398,eee $595,00 $ 109,000 5 206,000 c Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales d. The company's gross margin is 40% of sales. In other words, cost of goods sold is 60% of sales.) e Monthly expenses are budgeted as follows. salaries and wages. $28,000 per month advertising, $68.000 per month: Shippirig. 5% of sales, other expenses, 3% of sales Depreciation, including depreciation on new assets acquired during the quarter, will be $44.180 for the quarter. 1. Each month's ending inventory should equal 25% of the following month's cost of goods sold. 9 One-half of a month's inventory purchases is paid for in the month of purchase, the other half is paid in the following month n During February, the company will purchase a new copy machine for $2.300 cash. During March, other equipment will be purchased for cash at a cost of $76,500 During January, the company will declare and pay $45.000 in cash dividends. Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1.000 at the beginning of each month. 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 it is able, repay the loan plus accumulated interest at the end of the quarter. Required: Uung the data above complete the following statements and schedules for the first quarter. 1 Schedule of expected cash collections 2- Merchandise purchases budget 2-6 Schedule of expected cash disbursements for merchandise ourses 3 China 1. Each month's ending inventory should equal 25% of the following month's cost of goods sold g One-half of a month's inventory purchases is paid for in the month of purchase, the other half is paid in the following month h. During February, the company will purchase a new copy machine for $2,300 cash. During March, other equipment will be purchased for cash at a cost of $76,500. 1. During January, the company will declare and pay $45,000 in cash dividends. J. Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. 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 it is able, repay the loan plus accumulated interest at the end of the quarter Required: Using the data above, complete the following statements and schedules for the first quarter. 1 Schedule of expected cash collections: 2-a. Merchandise purchases budget 2-6. Schedule of expected cash disbursements for merchandise purchases 3 Cash budget 4. Prepare an absorption costing Income statement for the quarter ending March 31 5 Prepare a balance sheet as of March 31, Complete this question by entering your answers in the tabs below. R1 Reg 2A Reg 28 Reg 3 Reg 4 Reg 5 Complete the schedule of expected cash collections: Schedule of Expected Cash Collections January February March Cash sales $ 79 500 Cred sales 210 400 Total collections $ 200,000 Duarter Reg 2 > 2-0. Merchand purchases budget. 2-6. Schedule of expected cash disbursements for merchandise purchases: 3. Cash budget 4. Prepare an absorption costing Income statement for the quarter ending March 31 5. Prepare a balance sheet as of March 31. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 28 Req3 Reg 4 Reg 5 Complete the merchandise purchases budget: v March Quarter Merchandise Purchases Budget January February Budgeted cost of goods sold 238.800 S 357.000 Add desired ending inventory 89 250+ Total needs 328,050 Less beginning inventory 59.700 Required purchases 5 283,350 $300 000 sales 60% cost ratio=5238 800 15357 000 25% = 589 250 3. Cash budget 4. Prepare an absorption costing Income statement for the quarter ending March 31 5. Prepare a balance sheet as of March 31. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 3 Reg 4 Reg 5 Complete the schedule of expected cash disbursements for merchandise purchases, Schedule of Expected Cash Disbursements for Merchandise Purchases January February March Quarter December purchases $ 89,025 January purchases 134 175 134, 175 February purchases March purchases Total cash disbursements for purchases income statement for the quarter ending March 31 5. Prepare a balance sheet as of March 31. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 3 Reg 4 Reg 5 nces Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Hillyard Company Cash Budget January February March Quarter Beginning cash balance $ 53,000 Add collections from customers 290,000 Total cash available Less cash disbursements Inventory purchases 223 200 Selling and administrative expenses 127 840 Equipment purchases Cash dividends 45,000 Total cash disbursements 396,040 Excess deficiency of cash Financing Borowi Repayments Interest Total Financing Erding tai bai aU 3. Cash budget 4. Prepare an absorption costing Income statement for the quarter ending March 31 5. Prepare a balance sheet as of March 31 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Rega Reg 4 Regs Prepare an absorption costing income statement for the quarter ending March 31. Hillyard Company Income Statement For the Qunuter Ended March 31 1 ence Cost of goods sold Selling and distrative expenses Wale wool slicet 05 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Reg 3 Reg 4 Relas Prepare a balance sheet as of March 31. Hillyard Company Balance Sheet March 31 Assets Current assets Total current assets Total assets Liabilities and Stockholders' Equity Current liabilities Stockholders equy Tots and stockholders equity