Hillyard Company, an office supplies specialty 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 companys general ledger showed the following account balances b Actual sales for December and budgeted sales for the next four months are as follows 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 companys 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, $25,000 per month advertising, $65,000 per month shipping, 5 of sales other expenses, 3 of sales Depreciation, including depreciation on new assets acquired during the quarter, will be $43,700 for the quarter f Each months ending inventory should equal 25 of the following months cost of goods sold g One half of a months 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 $2,000 cash During March, other equipment will be purchased for cash at a cost of $75,000 i 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 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 loans is 1 per month and for simplicity we will assume that 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 I posted the rest of the questions on another post Don't know if this link will work https www chegg com homework help questions and answers two part question first 3 questions first post hillyard company office supplies specialty q16098925

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Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing

Hillyard Company, an office supplies specialty 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:

As of December 31 (the end of the prior quarter), the companys general ledger showed the following account balances:

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b. Actual sales for December and budgeted sales for the next four months are as follows:

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	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 companys 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, $25,000 per month: advertising, $65,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $43,700 for the quarter.
f.	Each months ending inventory should equal 25% of the following months cost of goods sold.
g.	One-half of a months 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 $2,000 cash. During March, other equipment will be purchased for cash at a cost of $75,000.
i.	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 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 loans is 1% per month and for simplicity we will assume that 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. I posted the rest of the questions on another post Don't know if this link will work https://www.chegg.com/homework-help/questions-and-answers/two-part-question-first-3-questions-first-post-hillyard-company-office-supplies-specialty--q16098925