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
	Accounts Receivable			217,000
	Inventory			60,000
	Buildings & Equipment (Net of 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.

		Hillard Company
		Cash Budget
1. Schedule of expected cash collections
	January	February	March	Quarter
Cash Sales
Credit Sales
Total Cash Collections	$0	$0	$0	$0
2. a. Inventory purchases budget
	January	February	March	Quarter
Budgeted Cost of Goods Sold
Add desired ending inventory
Total Needs	$0	$0	$0	$0
Less Beginning Inventory
Required Purchases	$0	$0	$0	$0
b. Schedule of cash disbursements for purchase
	January	February	March	Quarter
December Purchases
January Purchases
February Purchases
March Purchases
Total Cash Disbursements for	$0	$0	$0	$0
3. Schedule of cash disbursements for expenses
	January	February	March	Quarter
Salaries and Wages
Advertising
Shipping
Other Expenses
Total Cash disbursements for	$0	$0	$0	$0
4. Cash budget
	January	February	March	Quarter
Cash Balance, Beginning
Add Cash collections
Total Cash Available	$0	$0	$0	$0
Less Disbursements:
Purchases of inventory
Operating Expenses
Purchases of equipment
Cash Dividends
Total Disbursements	$0	$0	$0	$0
Excess (deficiency) of cash	$0	$0	$0	$0
Financing:
Borrowing
Repayments
Interest
Total Financing	$0	$0	$0	$0
Ending Cash Balance	$0	$0	$0	$0