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 s on credit. All poyments 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. (th 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, other expenses, 3\% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42.000 for the quarter. f. Each month's ending inventory should equal 25% of the following month's cost of goods sold 9. 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. 1. Duting January, the company will declare and pay $45,000 in cash dividends. 1- Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allovs the companv to borrow in increments of $1.000 at the bcoinning of each month. The interest rate on these loans is 1% ber month 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