Helping Hand Corp is interested in purchasing some new material-handling equipment right after thebeginning of the new year. They would like to finance the new equipment with cash and marketablesecurities, but if necessary they can get a short-term loan from a local bank. You have been engaged toprepare a master budget for Helping Hand Corp for the first quarter of 20x1. Helping Hand is a small,rapidly growing wholesaler of consumer electronic products. The company?s main product lines aresmall kitchen appliances and power tools. The marketing manager has recently completed a salesforecast. She believes the company?s sales during the first quarter of 20x1 will increase by 10 percenteach month over the previous month?s sales. Then sales are expected to remain constant for several months

NOTE

• The submission is to be anExcelfile.
• All calculations are to be shown, including the use of Excel formulas where applicable.
• All requirements should be on one excel worksheet

Helping Hand Corp is interested in purchasing some new material-handling equipment right after the besinning of the new year. They would like to finance the new equipment with cash and marketable seiurities, but if necessary they can get a short-term loan from a local bank. You have been engaged to prepare a master budget for Helping Hand Corp for the first quarter of 20x1.. Helping Hand is a small, ,rpiay growing wholesaler of consumer electronic products. The company's main product lines are small kitchen appliances and power tools. The marketing manager has recently completed a sales forecast' she believes the company's sales during the first quarter of 20x1 will incrgase by L0 percertt each month over the previous month's sales. Then sales are expected to remain constant for several months. Hetping Hand's projected balance sheet as of December 31, 20x0 is as follows: 7o,oo0 Cash 5 54O,000 Accounts receivable Marketable securities lnventory Buildings and equipment {net of accumulated Total assets 30,000 308,000 depreciation) $ 2'2oo'ooo s 352,800 Accounts Payable Bond interest PaYable Property taxes payable 1.452,000 25,000 7,zffi 600,000 Bonds payable (10%; due in 20x6) Common stock 1,ooo,oo0 . Retained earnings 31s,000 _i__use{es- Total liabilities and stockholders' equity The controller is now preparing a budget for the first guarter of 20x1.. ln the process, the following information has been accumulated: projected sales for December 20x0 are 5800,000. Credit sales are typically 75% of totals sales. Helping Hand's credit experience indicates that 10% of credit sales are collected during the 1) Zl 3) month of sale, and the remainder are collected during the following month. Helping Hand's cost of goods sold generally runs at TO% of sales. lnventory is purchased on account and z[0% of each month's purchases are paid during the month of purchase. The remainder is paid during the following month, ln order to have adequate stocks of inventory on hand, the company attempts to have inventory on hand at the end of each month equalto hatf of the nefi month's proiected cost of goods sold. The controller has estimated that Helping Hand's other monthly expenses will be as follows: salaries Advertising and Promotion Administrative salaries Depreciation lnterest on bonds Property taxes Sales $ ln addition, sales commissions run at the rate of 1 percent of sales. 42,000 32,000 42,000 50,000 5,000 1,800 4) ' in an automated The company president has indicated that the company should invest $250,000 warehouse inventory-handling system to controlthe movement of inventory in the companfs primarily from the just after the new year begins. These equipment purchase will be financed needs iompany's cash and marketable securities. However, the president believes the company to keep a minimum cash balance of $5OOO0. lf necessary, the remainder of the equipment purchases will be financed using short-term credit from a local bank' The minimum period for percent per year and such a loan is three months, The current short-term interest rates are 10 the time the equipment is purchased. lf a loan is are expected to rernain at this rate through first quarter if necessary the president has decided it should be paid off by the end of the 5) 6) possible, pay dividends of Helping Hand's board of directors has indicated an intention to declare and quarter. $1OO,OO0 on the last day of each lnterest on The interest on any short-term borrowing will be paid when the loan is repaid' 31 and July 31for the preceding sixHelping Hand's bonds is paid semiannually on January 7l month Period. property taxes are paid semiannually on February 28 and August 31for the preceding six-month period. Required: prepare Helping ltand Corp's master budget for the first guarter of 2{tx1 by completing the following schedules and statements. 1) Sales budget: 20xl 20x0 December January March Xst Ouarter March Februarv lst Qua!'ter Total sales Cash sales Sales on account 2) Cash receipts budget 20x1 January Fehruarv Cash sales Cash collections from credit sales made during current month Cash collections from credit sales made during Preceding month Total cash receiPts 3) Purchases budget: 20x1 20x0 Decembe,r Budgeted cost of goods sold Add: Desired ending inventory Total goods needed Less: Expected beginning inventory Purchases January Fehruarv March 1st Quarter 4l Cash disbursements budget; 2Ax7 Januafv Februarv March 1sI Qqa,rter lnventory purchases: Cash payments for purchases during the current month Cash payments for purchases during the preceding month Total cash payments for inventory purchases Other expenses: Sales salaries Advertising and Promotion Administrative salaries lntrest on bonds ProPefi taxes Sales commissions Total cash payments for other expenses Total cash disbursements S) Complete the first three lines of the summary budget, Then do the analysis of short-term financing needs in requirement (6). Then finish requirement (5)' Summary cash budget: 20x1 JanuQrv Februarv March lst Quarter Cash receipts tsch 2) Less: Cash disbursements {sch 4) Change in cash balance during period due to operations {L/Z/xll (UZlxLl Sale of marketable securities Proceeds from bank loan Purchase of equipment Repayrnent of bank loan (3/31/x1) lnterest on bank loan Payment of dividends Change in cash balance during first quarter balance,L/Llxl Cash balance,SlSllx\\ Cash 6) )OOOO( )OOOC( )OOOfr )OOOO( )OaOo( XrcOO( )OOOO( )COOO{ Analysis of short-term financing needs: Projected cash balance as of December 31, 20x0 Less: minimum cash balance for equipment purchases Projected proceeds from sale of marketable securities Cash available Cash available Less: Cost of investment in equipment Required short-term borrowing )OOO(X prepare Helping Hrnd's budgeted income staternent for the first quarter of 20x1. (lgnore incorne taxes..) 8) e) prepate Helping Hand's budgeted statement of retained earnings for the first guarter of 20x1' 31,20x1' (Hint: as of March EKTRACREDITT Prepare Hetping Hand's budgeted balanee sheet tnierest Payable is $10,0m and Property Ta:res Payable k $1,800') On March 31, 20x1, eonO