Hilyard 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: 58,000 214,400 Buildings and oquipment (nat) 38,000 S 90,525 500,000 110,325 $700,850 S700,850 Accounts payable Common stock Retained eamings b. Actual sales for December and budgeted sales for the next four months are as folows: January February March April $403,000 5600.000 $315,000 $211,000 c ales are 20% tor cash and 80% on credt. Al payments on credit sales are collected in the month folo ng sale. The accounts ecer able at December 31 are a resut o Dece oer credit sales d. The company's gross margin is 40% of sales (in other words, cost of goods sold is 60% of sales.) e. Month y expenses are budgeted as folos salaries and wages, S33 000 per month: advertisi . S 3,000 per month: shipping 596 o sales: o her expenses 3% o sales Depreca on induding deprecia on on nev assets acquired during the quar er, il be S44.980 or the quarter f. Each mont's encing 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 purohase; the other half is paid in the following month. h. During February, the company will purchase a new copy machine for $2.800 cash. Duning March, other equipment will be purchased for cash at a cost of $79,000. i. During January, the company wil declaro and pay $45,000 in cash dividonds j. Management wants to maintain a min um cash balance of S30 0 . The company has an a een ent th a local bank that alows te company to borro in increments of $1 000 at the be nning of each month. e interest ate on these loans is 1% er mont and or 8 mp city we wil assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter