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: Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings $ 42,000 201,600 58,050 352,000 $ 85,725 500,000 67,925 $ 653,650 $ 653,650 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) January February $ 252,000 $ 387,000 $ 584,000 $ 298,000 $ 195,000 March April 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 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, $17,000 per month: advertising, $57,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,420 for the quarter. 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. Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Complete the Schedule of expected cash collections: Cash sales Credit sales Total collections Schedule of Expected Cash Collections January February March $ 77,400 201,600 $ 279,000 S 0 $ Quarter $ 77,400 201,600 0 $ 279,000 ignment 1 Saved Prepare a balance sheet as of March 31. 11 Hillyard Company Balance Sheet March 31 Assets Current assets Print Total current assets 0 Total assets $ 0 Liabilities and Stockholders' Equity Current liabilities Stockholders' equity 0 Total liabilities and stockholders' equity $ 0 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Complete the schedule of expected cash disbursements for merchandise purchases. Schedule of Expected Cash Disbursements for Merchandise Purchases January February March Quarter December purchases $ 85,725 $ 85,725 January purchases 130,875 130,875 261,750 February purchases 0 March purchases 0 Total cash disbursements for purchases $ 216,600 $ 130,875 S 0 $ 347,475 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) March Quarter Hillyard Company Cash Budget January February $ 42,000 279,000 321,000 0 0 216,600 104,960 Beginning cash balance Add collections from customers Total cash available Less cash disbursements Inventory purchases Selling and administrative expenses Equipment purchases Cash dividends Total cash disbursements Excess (deficiency) of cash Financing Borrowings Repayments Interest Total financing Ending cash balance 45,000 366,560 (45,560) 0 0 0 0 0 0 0 (45,560) S 0 0 S 0 0 S 0 $ Prev 11 af 12 H! Next Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 11 Prepare an absorption costing income statement for the quarter ending March 31. Hillyard Company Income Statement For the Quarter Ended March 31 Print Cost of goods sold: 0 0 0 0 Selling and administrative expenses 0 0 $ 0 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: Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings $ 42,000 201,600 58,050 352,000 $ 85,725 500,000 67,925 $ 653,650 $ 653,650 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) January February $ 252,000 $ 387,000 $ 584,000 $ 298,000 $ 195,000 March April 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 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, $17,000 per month: advertising, $57,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,420 for the quarter. 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. Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Complete the Schedule of expected cash collections: Cash sales Credit sales Total collections Schedule of Expected Cash Collections January February March $ 77,400 201,600 $ 279,000 S 0 $ Quarter $ 77,400 201,600 0 $ 279,000 ignment 1 Saved Prepare a balance sheet as of March 31. 11 Hillyard Company Balance Sheet March 31 Assets Current assets Print Total current assets 0 Total assets $ 0 Liabilities and Stockholders' Equity Current liabilities Stockholders' equity 0 Total liabilities and stockholders' equity $ 0 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Complete the schedule of expected cash disbursements for merchandise purchases. Schedule of Expected Cash Disbursements for Merchandise Purchases January February March Quarter December purchases $ 85,725 $ 85,725 January purchases 130,875 130,875 261,750 February purchases 0 March purchases 0 Total cash disbursements for purchases $ 216,600 $ 130,875 S 0 $ 347,475 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) March Quarter Hillyard Company Cash Budget January February $ 42,000 279,000 321,000 0 0 216,600 104,960 Beginning cash balance Add collections from customers Total cash available Less cash disbursements Inventory purchases Selling and administrative expenses Equipment purchases Cash dividends Total cash disbursements Excess (deficiency) of cash Financing Borrowings Repayments Interest Total financing Ending cash balance 45,000 366,560 (45,560) 0 0 0 0 0 0 0 (45,560) S 0 0 S 0 0 S 0 $ Prev 11 af 12 H! Next Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 11 Prepare an absorption costing income statement for the quarter ending March 31. Hillyard Company Income Statement For the Quarter Ended March 31 Print Cost of goods sold: 0 0 0 0 Selling and administrative expenses 0 0 $ 0