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:Debits CASH $$48,000($D$)$ ACCOUNTS RECEIVABLE $$224,000($D$)$ INVENTORY $$60,000($D$)$ BUILDINGS AND EQUIPMENT $($NET$)$ $$370,000($D$)$

Credits ACCOUNTS PAYABLE $$93,000($C$)$ COMMON STOCK $$500,000($C$)$ RETAINED EARNINGS $$109,000($C$)$ Total Debit $$702,000$ Total Credit $$702,000$b$.)$ Actual sales for December and budgeted sales for the next four months are as follows:DECEMBER $($ACTUAL$)$ $$280,000,$ JANUARY $$400,000,$ FEBRUARY $$600,000,$ MARCH $$300,000,$ APRIL $$200,000$C$.)$ 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$$s gross margin is $40\%$ of sales. $($In other words, cost of goods sold is $60\%$ of sales.$)$E$.)$ Monthly expenses are budgeted as follows: salaries and wages, $$27,000$ per month: advertising, $$70,000$ per month; shipping, $5\%$ of sales; depreciation,$$ $$14,00$p per month; other expenses, $3\%$ of sales. F$.)$ Each month$$s ending inventory should equal $25\%$ of the following month$$s cost of goods sold.G$.)$ One$-$half of a month$$s 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 $$1,700$ cash. During March, other equipment will be purchased for cash at a cost of $$84,500.$I.$)$ 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.$ An open lone of credot is available at a local bank for any borrowing that may be needed during the quarter. All borrowing is done at the beginning of month, and all repayments are made at the end of a month. Borrowing and repayments of principal must be in increments of $$1,000.$ Interest is paid only at the time of payment t of principal. The annual interest rate is $12\%($ Figure interest on whole months. e$.$g$.1/12,2/12)$REQUIRED: Using the data above, complete the following statements and schedules for the first quarter:$1.$ SCHEDULE OF EXPECTED CASH $2.$a $)$ Inventory$$ purchase budget:b$.)$ Schedule of cash disbursements for purchases:$3.)$ Schedule of cash disbursements for expenses:$4.)$Cash budget:$5.)$ Prepare an income statement for the quarter ending March $31.6.)$ Prepare a balance sheet as of March$31.$