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Hillyard Company, an office supplies specialty store, gathered the foliowing information to prepare its master budget for the first quarter of the year: a. As

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Hillyard Company, an office supplies specialty store, gathered the foliowing information to prepare its master budget for the first quarter of the year: 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. Soles are 20% for cash and 80% on credit. Aa poyments on credit sales are collected in the month following saie. The accounts recelvable 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, $21,000 per month; advertising, $61,000 per month; shipping. 5% of sales, other expenses, 37 of sales, Depreciation, including deprecinion on new assets acquired during the quarter, will be $43,060 for the quarter. f. Each month's ending inventory should equal 25% of the following month's cost of goods soid. g. One-half of a monti's inventary purchases is paid for in the chonth of purchase, the other half is paid in the following month. 9. During February, the company will purchase a new copy machine for $1,600 cash. During March, other equipment will be purchased for cash at a cost of $73,000. L. During January, the company will deciare and pay $45,000 in cash dividends. 1. Mariagement wants to maintain a minimum cash balance of $30,000. The company has an agreement with a locar tank allowing it to borrow in increments of 51,000 at the beginning of each month. The interest rate on these loans is the per month, and for interest at the end of the quartec. Required: Using the data above, complete the following statements and schedules for he first quanter 1. Schedule of expected cosh collections: 2-a. Merchandise purchases budget: 2-b. Schedule of expected cash disbursements for merchandise purchases: 3. Cosh budget: 4. Prepare an absorption coating income statement for the quarter ending March 31 5. Prepare a balance sheet as of March 31 . 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. Prepare a balance sheet as of March 31

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