Master Budget Excel Assignment; Hillard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the first quarter:

a. As of December 31 (the end of the prior quarter), the company's General Ledger shows:

	Debits	Credits
Cash	50,000
Account Receivable	217,000
Inventory	60,000
Buildings & Equipment (Net Depreciation)	300,000
Accounts payable		$80,000
Capital stock		430,000
Retained Earnings		117,000
	$627,000	$627,000

b. Actual Sales for December and budgeted sales for the next four months are as follows:

December (Actual)	$310,000
January	500,000
February	630,000
March	345,000
April	240,000

c. Sales are 30% for cash and 70% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at December 31 are a result of December credit sales.

d. The company's gross profit rate is 35% of sales.

e. Monthly expenses are budgeted as follows: salaries and wages, $35,000 per month; advertising, $55,000 per month; shipping, 7.5% of sales; depreciation, $15,000 per month; other expenses, 5% of sales.

f. At the end of each month, inventory is to be on hand equal to 20% of the following month's sales needs, stated at cost.

g. One-half of a month's inventory purchases is paid for in the month of purchase; the other half is paid for in the following month.

h. During February, the company will purchase a new copy machine for $2,000 cash. During March, other equipment will be purchased for cash at a cost of $50,000. Depreciation expense on assets purchased during the first six months of the year half will begin being depreciated at the second half of the year.

i. During January, the company will declare and pay $45,000 in cash dividends.

j. The company must maintain a minimum cash balance of $25,000. An open line of credit is available at a local bank for any borrowing that may be needed during the quarter. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month. Borrowings and repayments of principal must be in multiples of $1,000. Interest is paid only at the time of complete repayment of total principal. Interest is computed on funds utilized for each month. The annual interest rate is 12%. (Figure interest on whole months, e.g., 1/12, 2/12)

i. If required, make necessary assumptions and state them in the answer document. Required Using this data, complete the following budgets & statements for the first quarter:

Using this data, complete the following budgets & statements for the first quarter:

1. Schedule of expected collections

2a. Inventory Purchases budget

2b. Schedule of cash disbursments for purchase

3. Schedule of cash disbursment for expense

4. Cash budget

5. Prepare an income statement for the quarter ending March 31. (Do an income statement for Jan. Feb. March and full quarter)

6. Prepare a balance sheet as of March 31.