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Hilbard Company, an offece supplies speciaity store, gathered the following information to prepare its naster budget for the firt quarter of the jear: a. As

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Hilbard Company, an offece supplies speciaity store, gathered the following information to prepare its naster budget for the firt quarter of the jear: a. As of December 31 (the end of the prior quartet), the company's general ledger showed the following account balances: b. Actual sales for December and bodgeted sales for the next four months are as follows: 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.) c. Monthly expenses are budgeted as follows: salaries and wages, $27,000 per month: advertising. $70.000 per monthe shipping. 5% of sales; other expenses, 34 of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,000 for the quarter. f. Each month's coding imentory should equal 25% of the following month's cost of goods sold. 8. Onchalf of a month's imentory 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 $1.700 cash. During March, other equipment will be purchased for cash at a cost of 554,500 . 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 compary has an agreenent with a local bank allowing it to borrow in increments of $1,000 at the beginnine of each month. The interest rate on these loans is 1% per month. and, for simplicity. we will assume 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. Wring the dasa above, complete the foloming statements and schedeles for the fira guarter: 1. Schitdule of cepected cath colliections: 2. a. Merchandise purchaser bodpet: b Sibedule of exsected canh disbursements for merrehandiae purchases. 1. Cath budget 5. Pirpare a balasce sheet at or March 31

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