Hisyard Company, an office supplies specialty store prepares its master budget on a quarterly bacis. The following data have been ascembled to astist in preparing the master budget for the fist quarter: as of December 31 the end of the pros quarten. the company's general ledger showed the following account balances: b. Actual bales for December and budgeted sales for the next four months are as followe: c. Sales are 20% for cash and 80% on credit. All payments on credt sales are collected in the month following sale. The accounts recelvable at December 31 are a result of December credt sales. d. The company's gross margin is 40% of sales. (in other words. cost of goods sold is 60% of sales.) e. Monthly expenses are buogeted as follows: salarles and wages, $15,000 per month, advertising. $55,000 per month, shipping. 5% of sales; other expenses. 3% of sales. Depreciation, tincuding depreciation on new assets acquired durng the quarter, will be $42,100 for the quarter. t. Each month's ending inventory should equal 25% of the folowing monthis coct of goods sold. 9. One half of a month's inventory purchases is pald for in the month of purchase, the other half 15 paid in the following month. h. During February, the company wil purchase a new copy machine for $1,000 cash. Durng March, other equipment will be purchased for cash at a cost of $70.000. 1. During January, the company will declare and pay $45.000 in cash devdends. 1. Management wants to maintain a mintmum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is to per month. 1. Durting January, the company will declare and pay $45,000 in cash dividends. J. Management wants to maintain a minimum cash balance of $30.000. The company has an agreement with a local bank th the company to borrow in Increments of $1.000 at the beginning of each month. The interest rate on these loans is 1% per and for simplicity we Will assume that interest is not compounded. The company would. as far as it is able, repay the loan 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 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