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Help me answer this please thank you Chapter 7 - Assignment i Saved Help Save & Exit Hillyard Company, an office supplies specialty store, prepares

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Chapter 7 - Assignment i Saved Help Save & Exit Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the first quarter: a. As of December 31 (the end of the prior quarter), the company's general ledger showed the following account balances: 100 Debits Credits points Cash 000'60 $ Accounts receivable 224, 000 Inventory 63, 000 Buildings and equipment (net) 369, 000 Accounts payable $ 95, 000 Capital shares 500,000 Retained earnings 110, 000 $705,000 $705,000 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) $280, 000 January 420, 000 February 680, 000 March 310, 000 April 220, 000Chapter 7, Assignment 0 Saved 100 perms 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. (I. The company's gross margin is 40% of sales. e. Monthly expenses are budgeted as follows: salaries and wages, $25000 per month: advertising, 3968.000 per month: shipping. 5% of sales: depreciation. $15,000 per month; other expenses, 3% of sales. f. At the end of each month. inventory is to be on hand equal to 25% of the following month's sales needs, stated at cost. 9. Oneehalf of a month's inventory purchases are paid for in the month of purchase; the other half are paid for in the following month. h. During February. the company will purchase a new copy machine for $1,500 cash. During March. other equipment will be purchased for cash at a cost of $81,500. i. During January. the company will declare and pay $45,000 in cash dividends. j. The company must maintain a minimum cash balance of 3931.000. An open line of credit is available at a local bank for any borrowing that may be needed during the quarter. All borrowing is done at the beginning of a month. and all repayments are made at the end ofa month. Borrowings and repayments of principal must be in multiples of $1,000. Interest is paid only at the time of payment of principal. The annual interest rate is 12%. (Figure interest on whole months. e.g..1/12.2f12.) Required: Using the preceding data. complete the following statements and schedules for the rst quarter: 1. Schedule of expected cash collections. Cash sales Credit sales Tolal cash collections Help Save E Exit Submit \fChapter 7 - Assignment Saved 2-b. Schedule of cash disbursements for purchases. HILLYARD COMPANY 100 points Schedule of Cash Disbursements for Purchases January February March Quarter December purchases January purchases February purchases March purchases Total cash disbursements for purchases3. Schedule of cash disbursements for expenses. ints Total cash disbursements for operating expenses Chapter 7 7 Assignment 0 Saved Help Save a I 4. Cash budget. (Roundup "Borrowing" and "Repayments" answers to the nearest whole dollar amount. Any "Repayments" and 1 "Interest" should be indicated by a minus sign.) 100 points Total cash available Deduct: Disbursements Total disbursements Excess (deciency) cf cash Financing: L Totalflnancmg L Chapter 7 Assignment 0 Saved 100 points 5. Prepare an income statement for the quarter ending March 31. Deduct: Cost of goods sold' Goods available for sale Deduct: Operating expenses: Chapter 7 Assignment 0 6. Prepare a balance sheet as of March 31. 100 points Current assets: Total current assets E Total assets E Liabilities and Shareholders' Equity Current liabilities E Stockholders' equity: Total shareholders' equity E Total liabilities and shareholders' equity Saved

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