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: 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 aross 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, $20,000 per month advertising, 560,000 per month, shipping, 5% of sales, other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42.900 for the quarter f Each month's ending inventory should equal 25% of the following month's cost of goods sold. g. One half of a morth's invent ory purchases is paid for in the month of purchase the other halfis paid in the following month h. During February, the company wil purchase a new copy machine for $1,500 cash, During March, other equipment will be purchased for cash at a cost of $72.500 1. Ouring January, the company wil declare and pay $45,000 in cash dividends 1. Management wants to maiptain a minimum cash batance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loars is 75 per month and for simplicity we will assume that interest is nol compounded. The company hould, as far as it is able repay the foan plus accumulated interest at the end of the quanter Required: Using the data above, complete the following statements and schedules for the first quarter: 1. Schedule of expected cash collections: 2-a. Merchandise purchases budget: 2-b. Schedule of expected cash disbursements for merchandise purchases: 3. Cash budget: 4. Prepare an absorption costing income statement for the quarter ending March 31. 5. Prepare a balance sheet as of March 31 . Complete this question by entering your answers in the tabs below. Complete the Schedule of expected cash collections