Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The have been assembled to assist in preparing the master budget for the first quarter: Balance Sheet, Period Ending December 31, 2018 Budget Problem - Intro Cash $48,000 Accounts Receivable $224,000 Inventory $60,000 PP&E $670,000 Accum Depr $300,000 Accounts Payable $93,000 Working Capital Line So Accrued Liabilities $0 Common Stock $500,000 Retained Earnings $109,000 Total Assets $702,000 Total Liab & Equity 702,000 Sales December 2018 (Actual) $280,000 January 2019 - Forecast $400,000 February 2019 - Forecast $600,000 March 2019 - Forecast $300,000 April 2019 - Forecast $200,000 O O ter lengthy conversations with the various department managers, the following assumptions were mac coming quarter: Sales to customers are 20% for cash and 80% placed on credit. All credit sales are fully collected in the month following the sale. 100% of the December 31 Accounts Receivable are from December credit sales. The company's expected gross margin on sales for the quarter is 40%, each month. Monthly expenses are forecasted as follows: Salaries expense is $27,000 per month o Advertising expense is $70,000 per month Shipping costs is 5% of sales Other Administrative expenses is 3% of sales Depreciation is $14,000, per month Each month's ending inventory should equal 25% of the following month's cost of goods sold. of the inventories purchased, 50% is paid for in the month it is purchased and the other 50% is paid for following month. December Accounts Payable is fully paid in January During February, the company will purchase (for cash) a new copy machine for $1,700. During March, equipment will be purchased at a cost of $84,500 (for cash). During January, the company will declare and pay cash dividends totaling $45,000 The CFO wants to maintain a minimum cash balance of $30,000 at the end of each month, beginning att of January The company has an agreement with the bank that allows borrowings in increments of $1.000. Any anticis borrowings are taken out at the beginning of the month Interest on borrowings is 1% per month; interest is not compounded. At the end of the month, any excess cash is used to pay outstanding borrowings and interest owed. REQUIRED Prepare a cash budget for the months of Jan, Feb and March 2019 Prepare a Proforma Balance Sheet as of March 31, 2019 Drepare of Protarma