Hillyord Compony, on office supplies specialty store, prepores its moster budget on a quarterly bosis. The following dots hove been ussembled to assist in preparing the master budget for the first quarter: a. As of December 31 (the end of the prior quarter), the compony'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 cosh and 80% on credit. All poyments on credit soles are collected in the month following sole. The accounts receivable at December 31 are a result of December credit sales. d. The compony'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, $15,000 per month: advertising. $55,000 per month; shipping. 5% of sales; other expenses, 3% of soles. Depreciation, including depreciation on new sssets acquired during the quarter, will be $42,100 for the quorter. 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 purchsses is psid for in the month of purchsse; the other half is poid in the following month. h. During February, the compony will purchase o new copy machine for $1,000 cosh. During March, other equipment will be purchased for cosh at a cost of $70,000. i. During January, the company will declare and pay $45,000 in cosh dividends. j. Mansgement wonts to maintain a minimum cosh bolance of $30,000. The compony has an ogreement with o local benk that allows the compsny to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The compony would, as far as it is able, repoy the loon plus accumulated interest at the end of the quarter. Required: Using the data above, complete the following statements and schedules for the first quarter: 1. Schedule of expected cosh collections: 2-v. Merchandise purchoses budget: 2-b. Schedule of expected cosh disbursements for merchandise purchases: 3. Cosh budget: 4. Prepore on absorption costing income statement for the quarter ending March 31. 5. Prepare a balance sheet os of March 31. Complete this question by entering your answers in the tabs below. Complete the Schedule of expected cash collections