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 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 credt. All payments on credit sales are collected in the month following sale. The accounts recelvabie 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 605 of sales) e. Monthly expenses are budgeted as follows: salaries and wages, $17,000 per monthe advertising. $57,000 per monats shipping. 5% of sales; other expenses, 3% of saies. Depreciation, including deprecintion on new assets acquired during the quartec, will be \$42, 420 for the quarter: 1. Each monthis ending inventory should equal 258 of the following month's cost of goods sald 9. One-half of a momthis inventory purchases is paid for in the monin of purchases the other haif is paid in the following month. h. During February, the company will purchase a new copy machine for $1,200cash. During March, other equipment wil be purshased for cosh at e cost of 571000 . LDurng Janunry, the company wil declere and pay 545.000 in cash dividends. 1. Mangpement wants to maindin a minimum cash balance of 530,000 . The company has an agreement wath a local bonk that allows the company to bortow in increments of $1,000 at the beginning of each month. The interest rate on these fosis is th per month and for simplicity we will assume tuat interest is not compounded. The compony would, as far as it is able, repay the ban plis accumulated interest at the end of the cuartec. 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 cash budget, (Cash deficiency, repayments and interest should be indicated by a minus sign Prepare an absorption costing income statement for the quarter end Prepare a balance sheet as of March 31 . 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 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 credt. All payments on credit sales are collected in the month following sale. The accounts recelvabie 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 605 of sales) e. Monthly expenses are budgeted as follows: salaries and wages, $17,000 per monthe advertising. $57,000 per monats shipping. 5% of sales; other expenses, 3% of saies. Depreciation, including deprecintion on new assets acquired during the quartec, will be \$42, 420 for the quarter: 1. Each monthis ending inventory should equal 258 of the following month's cost of goods sald 9. One-half of a momthis inventory purchases is paid for in the monin of purchases the other haif is paid in the following month. h. During February, the company will purchase a new copy machine for $1,200cash. During March, other equipment wil be purshased for cosh at e cost of 571000 . LDurng Janunry, the company wil declere and pay 545.000 in cash dividends. 1. Mangpement wants to maindin a minimum cash balance of 530,000 . The company has an agreement wath a local bonk that allows the company to bortow in increments of $1,000 at the beginning of each month. The interest rate on these fosis is th per month and for simplicity we will assume tuat interest is not compounded. The compony would, as far as it is able, repay the ban plis accumulated interest at the end of the cuartec. 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 cash budget, (Cash deficiency, repayments and interest should be indicated by a minus sign Prepare an absorption costing income statement for the quarter end Prepare a balance sheet as of March 31