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: Credits Cash $ 29,000 Accounts Receivable 159,250 Inventory 33,000 Buildings & Equipment (Net of Depreciation) 550,000 Accounts Payable $ 112,000 Capital Stock 461,750 Retained Earnings 197,500 $ 771,250 $ 771,250 b. Actual Sales for December and budgeted sales for the next four months are as follows: $ December (Actual) January February March April 245,000 750,000 500,000 375,000 299,500 Sales are 25% for cash and 75% on credit. All payments on credit sales are colected in the month following the sale. The accounts receivable at December 31 are a result of December credit sales. d. The company's grass profit rate is 45% of sales. Monthly expenses are budgeted as follows: salaries and wages, $75,000 per month; advertising, $55000 per month; shipping, 5.6% of sales; depreciation, $19,000 per month; other expenses, 3% 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. 40% of a month's inventory purchases is paid for in the month of purchase; the other 60% is paid for in the following month. During February, the company will purchase a new copy machine for $1,700 cash. During March, other equipment will be purchased for cash at a cost of $60,000. 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 $47,500 in cash dividends. The company must maintain a minimum cash balance of $20,000. An open line of credit is available at a local bank for any borrowing that may be needed dring 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 payment of complete repayment of total principal. Interest is computed on funds utilised for each month. The annual interest rate is 15%. (Figure interest on whole months, e.g., 1/15, 2/15) m. Assume a 15% tax on income at the end of each month that will be withheld until April 15th n. Assume a 2% discount on all cash sales 0. If required, make necessary assumptions and state them in the answer document, Hillard Company Income Statement Jan. Feb. Mar. Quarter Gross sales revenue Less: cash Discounts for early payment of credit sales Net Sales Less: COGS Gross Margin SGA Net operating income Less: Interest expense Income before income taxes Less: Income Taxes (15%) Net Income 4. Cash budget January February March Quarter Cash Balance, Beginning Add Cash collections Total Cash Available Less Disbursements: Purchases of inventory Operating Expenses Purchases of equipment Cash Dividends Total Disbursements Excess (deficiency) of cash Financing: Borrowing Repayments Interest Total Financing Ending Cash Balance Current Assets Cash Net accounts receiveable Finished Goods Inventory Total current assets Property Plant & Equipment Buildings and Equipment Less:Accumulated Depreciation Total PPE Total Assets Liabilities and Stockholders Equity Current Liabilities Accounts Payable ST Line of Credit Taxes payable Interest Payable Total Liabilities Stockholders equity Capital Stock Retained earnings Total Stockholders Equity Total liabilities and stockholders equity 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: Credits Cash $ 29,000 Accounts Receivable 159,250 Inventory 33,000 Buildings & Equipment (Net of Depreciation) 550,000 Accounts Payable $ 112,000 Capital Stock 461,750 Retained Earnings 197,500 $ 771,250 $ 771,250 b. Actual Sales for December and budgeted sales for the next four months are as follows: $ December (Actual) January February March April 245,000 750,000 500,000 375,000 299,500 Sales are 25% for cash and 75% on credit. All payments on credit sales are colected in the month following the sale. The accounts receivable at December 31 are a result of December credit sales. d. The company's grass profit rate is 45% of sales. Monthly expenses are budgeted as follows: salaries and wages, $75,000 per month; advertising, $55000 per month; shipping, 5.6% of sales; depreciation, $19,000 per month; other expenses, 3% 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. 40% of a month's inventory purchases is paid for in the month of purchase; the other 60% is paid for in the following month. During February, the company will purchase a new copy machine for $1,700 cash. During March, other equipment will be purchased for cash at a cost of $60,000. 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 $47,500 in cash dividends. The company must maintain a minimum cash balance of $20,000. An open line of credit is available at a local bank for any borrowing that may be needed dring 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 payment of complete repayment of total principal. Interest is computed on funds utilised for each month. The annual interest rate is 15%. (Figure interest on whole months, e.g., 1/15, 2/15) m. Assume a 15% tax on income at the end of each month that will be withheld until April 15th n. Assume a 2% discount on all cash sales 0. If required, make necessary assumptions and state them in the answer document, Hillard Company Income Statement Jan. Feb. Mar. Quarter Gross sales revenue Less: cash Discounts for early payment of credit sales Net Sales Less: COGS Gross Margin SGA Net operating income Less: Interest expense Income before income taxes Less: Income Taxes (15%) Net Income 4. Cash budget January February March Quarter Cash Balance, Beginning Add Cash collections Total Cash Available Less Disbursements: Purchases of inventory Operating Expenses Purchases of equipment Cash Dividends Total Disbursements Excess (deficiency) of cash Financing: Borrowing Repayments Interest Total Financing Ending Cash Balance Current Assets Cash Net accounts receiveable Finished Goods Inventory Total current assets Property Plant & Equipment Buildings and Equipment Less:Accumulated Depreciation Total PPE Total Assets Liabilities and Stockholders Equity Current Liabilities Accounts Payable ST Line of Credit Taxes payable Interest Payable Total Liabilities Stockholders equity Capital Stock Retained earnings Total Stockholders Equity Total liabilities and stockholders equity