Hillyard Company, an office supplies specialty store prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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 Cash Accounts receivable Inventory Buildings and equipment (nat) Accounts payable Capital there Debit Credits $ 45,000 224.000 61,500 167.000 50,00 495,000 112.500 5700,500 5100,500 b. Actual sales for December and budgeted sales for the next four months are as follows 5230,00 410,000 December (tust January February March Aril 200,000 Sales are 20% for cash and 80% on credit All payments on credit cales are collected in the month flowing Sale: The account receivable 1 December 31 are a result of December credit sales d The como DSS is of sales 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 e Monthly expenses are budgeted as follows salaries and wages $25.000 per month advertising, 568,000 per month shipping, 5% of Sales depreciation, $13,000 per month other expenses 3% of sales. 1. At the end of each month, inventory is to be on hand equal to 25% of the following month's sales needs, stated at cost g One half of a month's inventory purchases are paid for in the month of purchase the other half are paid for in the following month h During February, the company will purchase a new copy machine for $2,500 cash During March other equipment will be purchased for cash at a cost of $80,500 During January, the company will declare and pay $45.000 in cash dividends 1 The company must maintain a minimum cash balance of $28,000 An open line of credit is available at a local bank for any borrowing that may be needed during the quarter All borrowing is done at the beginning of a month and all repayments are made at the end of a month Borrowings and repayments of principal must be in multiples of $1000 Interest is paid only at the time of payment of principal The annual interest rate is 12%(Figure interest on whole months. eg. 1/12.2/12) Required: Using the preceding data, complete the following statements and schedules for the first quarter 1. Schedule of expected cash collections Hillyard Company, an office supplies specialty store prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of 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 Cash Accounts receivable Inventory Buildings and equipment (nat) Accounts payable Capital there Debit Credits $ 45,000 224.000 61,500 167.000 50,00 495,000 112.500 5700,500 5100,500 b. Actual sales for December and budgeted sales for the next four months are as follows 5230,00 410,000 December (tust January February March Aril 200,000 Sales are 20% for cash and 80% on credit All payments on credit cales are collected in the month flowing Sale: The account receivable 1 December 31 are a result of December credit sales d The como DSS is of sales 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 e Monthly expenses are budgeted as follows salaries and wages $25.000 per month advertising, 568,000 per month shipping, 5% of Sales depreciation, $13,000 per month other expenses 3% of sales. 1. At the end of each month, inventory is to be on hand equal to 25% of the following month's sales needs, stated at cost g One half of a month's inventory purchases are paid for in the month of purchase the other half are paid for in the following month h During February, the company will purchase a new copy machine for $2,500 cash During March other equipment will be purchased for cash at a cost of $80,500 During January, the company will declare and pay $45.000 in cash dividends 1 The company must maintain a minimum cash balance of $28,000 An open line of credit is available at a local bank for any borrowing that may be needed during the quarter All borrowing is done at the beginning of a month and all repayments are made at the end of a month Borrowings and repayments of principal must be in multiples of $1000 Interest is paid only at the time of payment of principal The annual interest rate is 12%(Figure interest on whole months. eg. 1/12.2/12) Required: Using the preceding data, complete the following statements and schedules for the first quarter 1. Schedule of expected cash collections