Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following dara have been assembled to ossist in preparation of the moster 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 batances b. Actual sales for December and budgeted sales for the next four months are as follows b. Actual sales for December and budgeted sales for the next four months are as followe C. Sales are 20% for cash and 80% on credit All payments on credit saies are colected in the month fatiowing sale The accounts recelvable at December 31 are a result of Decembor credit sales. d. The company's gross margin is 40 \% of soles. e. Monthly expenses are budgeted as follows salaries and wages, $23,000 per month advertiting, $67,000 per nionth, shipging. 5$. of sales, depreciation, $15,000 per month, other expenses, 3% of sales f. At the end of each month, inventory is to be on hand equal to 25% of the following monthis soles needs, statied at cost g One-halr of a month's inventory purchoses are paid for in the month of purchase; the other haif are paid for in the following month for cash et a cost of $85,500 1. Ouring Janwary, the company will declare and pay $47,000 in cash dividends 1. The company must maintain o minimum cash balsnce of $32.000 An open line ot credit is avallable at a locel bank for aty. borrowing that may be needed duting the quartoc All borrowing is done at the beginning of a month and alt repoyments arn made at the end of a month. Borrowings and repoyments of principal must be in multiples of $ tood interest is paid ony at the lime of h. During February, the company will purchase a new copy machine for $1,000 cash. During March, other equipment wili be purchased for cash at a cost of $85,500 1. During January, the company will declare and pay $47,000 in cash dividends 1. The company must maintain a minimum cash balance of $32.000. An open line of credit is avalable 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 repoyments are mace at the end of a month. Borrowings and repayments of principal must be in multples of 51,000 Interest is pard only at the time of payment of principal. The annual interest rate is 12%. (Figure interest on whole months, eg, 1/12, 2/2) Required: Using the preceding data, complete the following statements and schedules for the first quarter: 1. Schedule of expected cash collections