Hillyard Company, an office supplies speciaity store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing 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: Debit S 49,000 207,200 59,100 Credit Cash Accounts receivable Inventory Buildings and equipment (net) 359,000 Accounts payable Common stock Retained earnings S 87,825 500,000 86,475 S 674,300 S 674,300 b. Actual sales for December and budgeted sales for the next four months are as follows: January February March April S 259,000 $ 394,000 $ 591,000 S 305,000 $ 202,000 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, $24.000 per month. advertising, $64.000 per month, shipping, 5% of sales other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $43,540 for the quarter 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 $1,900 cash. During March, other equipment will be purchased for cash at a cost of $74,500. 5. Prepare a balance sheet as of March 31. Hillyard Company Balance Sheet March 31 Assets Current assets: Total current assets 0 Total assets 0 Liabilities and Stockholders' Equity Current liabilities: Stockholders' equity: Total liabilities and stockholders' equity 0