HIP Save Submit Hillyard Company, an office supplies specially 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 Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Con stock Retained earning $ 46,000 204,00 58,650 356,000 $ 86,925 500.000 28.525 $ 665,450 $665.450 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual January February March 5.256,000 $ 391.000 $588,000 50,00 5.199.000 April Sales are 20% for cash and 80% on credit. All payments on coedit 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 mardins 40% of sales. In other words. Cost of gods sold is 60% of sales None TERS 10 Help Seve El Submit 7 Sales are 20% for cash and 80% on credit. All payments 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 marginis 40% of sales. In other words, cost of goods sold is 60% of sales e Monthly expenses are budgeted as follows salaries and wages, 521000 per month advertising S61000 per month shoping, 5% of sales other expenses 3 of sales Depreciation, including depreciation on new assets acquired during the Garter will be $43.060 for the quartet Each month's ending inventory should equal 25% of the following month's cost of goods sold o 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 During February, the company will purchase a new copy machine for $1,600 cash During Mach other equipment will be purchased for cash at a cost of $73.000 During January, the company will declare and pay $45.000 in cash dividends Management wants to maintain a minimum cash balance of $30.000 The company has an agreement with a local bank that allows the company to borrow in increments of S1000 at the beginning of each month The interest rate on these loans per month and for simplicity we will assume that interest is not compounded. The company would as far as it is able repay the loans accumulated interest at the end of the quarter Required: Usang the cluta above complete the following statements and scheduled for the first quartet 1 Schedule of expected cash collections Za Merchandise purchases budget 2. Schedule of expected cash disbursements for merchandise purchases 3. Cash budget 4. Prepare an absorption costing income statement for the quarter ending March 21 5. Prepare a balance sheet as of March 3