how to solve required4 and required5 ?

Hillyard 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: Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings $ 40,000 200,000 57,750 350,000 $ 85,125 500,000 62,625 $ 647,750 $ 647,750 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) January February March April $ 250,000 $ 385,000 $ 582,000 $ 296,000 $ 193,000 C. 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 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 sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,100 for the quarter. f. Each month's ending 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 purchase, the other half is paid in the following month. h. During February, the company will purchase a new copy machine for $1,000 cash. During March, other equipment will be purchased for cash at a cost of $70,000. i. During 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 that allows the company 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 company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Required 1 Required 2A Required 2B Required 3 Required 4 Red Prepare an absorption costing income statement for the quarter ending Mar Hillyard Company Income Statement For the Quarter Ended March 31 Sales $ 1,263,000 Cost of goods sold: Beginning inventory Purchases 57.750 729.000 Goods available for sale 786,750 28,950 757.800 505,200 Ending inventory Gross margin Selling and administrative expenses Salaries and wages Advertising Depreciation Other expenses 45,000 165,000 63,150 42,100 Obinninn For the Quarter Ended March 31 Sales $ 1,263,000 Cost of goods sold: Beginning inventory Purchases 57,750 729,000 Goods available for sale 786,750 28,950 757,800 505,200 45,000 165,000 63 150 Ending inventory Gross margin Selling and administrative expenses. Salaries and wages Advertising Depreciation Other expenses Shipping Depreciation Other expenses Net operating income Interest expense 42,100 315.250 189,950 Net income $ 189,950 ment Saved 4. Prepare an absorption costing income statement for the quarter ending March 31. 5. Prepare a balance sheet as of March 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Prepare a balance sheet as of March 31. Hillyard Company Balance Sheet March 31 Assets Current assets: Cash Accounts receivable Inventory Total current assets 0 nent 0 Saved Assets Current assets: Cash Accounts receivable Inventory Total current assets 0 Total assets $ 0 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Stockholders' equity Common stock Retained earnings Common stock 0 Total liabilities and stockholders' equity $ 0