Hillyard Company, an office suppiles 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: b. Actual sales for December and budgeted 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 1540% of sales. e. Monthly expenses are budgeted as follows: salaries and wages, $28,000 per month; advertising, $71,000 per month; shipping, 5% of sales; depreciation, $14,000 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. One-half of a month's inventory purchases are paid for in the month of purchase; the other half are paid for in the following h. During February, the company will purchase a new copy machine for $4,000 cash. During March, other equipment will be purchased for cash at a cost of $85,500 1. During January, the company will declare and pay $46,000 in cash dividends. 1. The company must maintain a minimum cash balance of $32,000. An open line of credit is avallable 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 of a 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, 2/12.) Required: Using the preceding data, complete the following statements and schedules for the first quarter: 1. Schedule of expected cash collections. 1. Schedule of expected cash collections. 2-a. Inventory purchases budget. 2-b. Schedule of cash disbursements for purchases. . . 4. Cash budget. (Roundup "Borrowing" and "Repayments" answers to the nearest whole dollar amount. Any "Repayments" and "Interest" should be indicated by a minus sign.) 5. Prepare an income statement for the quarter ending March 31. 6. Prepare a balance sheet as of March 31 . Hillyard Company, an office suppiles 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: b. Actual sales for December and budgeted 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 1540% of sales. e. Monthly expenses are budgeted as follows: salaries and wages, $28,000 per month; advertising, $71,000 per month; shipping, 5% of sales; depreciation, $14,000 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. One-half of a month's inventory purchases are paid for in the month of purchase; the other half are paid for in the following h. During February, the company will purchase a new copy machine for $4,000 cash. During March, other equipment will be purchased for cash at a cost of $85,500 1. During January, the company will declare and pay $46,000 in cash dividends. 1. The company must maintain a minimum cash balance of $32,000. An open line of credit is avallable 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 of a 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, 2/12.) Required: Using the preceding data, complete the following statements and schedules for the first quarter: 1. Schedule of expected cash collections. 1. Schedule of expected cash collections. 2-a. Inventory purchases budget. 2-b. Schedule of cash disbursements for purchases. . . 4. Cash budget. (Roundup "Borrowing" and "Repayments" answers to the nearest whole dollar amount. Any "Repayments" and "Interest" should be indicated by a minus sign.) 5. Prepare an income statement for the quarter ending March 31. 6. Prepare a balance sheet as of March 31