please answer using excel and can you please show the formulas used.

PROBLEM 8-31 Completing a Master Budget LO8-2, LO8-4, LO8-7, Lo8-8, LO8-9, Lo8-10 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 gencral ledger showed the following account balances: Debits Credits Cash. Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings $ 48,000 60,000 370,000 $93,000 109,000 $702,000 $702,000 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) January February March. April $280,000 $400,000 $600,000 $300,000 $200,000 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. The company's gross margin is 40% of sales. (In other words, cost of goods sold is 60% of c. d. Monthly expenses are budgeted as follows: salaries and wages, $27,000 per month: advertis- ing, $70,000 per month, shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,000 for the quarter. e. f. Each month's ending inventory should equal 25% ofthe following month's cost of goods sold. &. 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. 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 $84,500. h. . 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: Using the data above, complete the following statements and schedules for the first quarter: I. Schedule of expected cash collections January February March Quarter Cash sales Credit sales Total cash collections $80,000 224,000 $304,000 2. a. Merchandise purchases budget: January February March Quarter Budgeted cost of goods sold. Add desired ending inventory. .. Total needs. Less beginning inventory. , . Required purchases $240,000 $360,000 90,000 330,000 60,000 $270,000 -$400,000 sales 60% cost ratio '8360,000 x 25%-$90,000. $240,000. b. Schedule of expected cash disbursements for merchandise purchases: January February March Quarter December purchases January purchases February purchases 93,000 135,000 135,000 $93,000 270,000 Total cash disbursements $228,000 3. Cash budget: January February March Quarter 48,000 304,000 Beginning cash balance.... Add cash collections.. Total cash available. Less cash disbursements: 352,000 Inventory purchases . 228,000 Equipment purchases. .. . Cash dividends . 45,000 Total cash disbursements . 402,000 Excess (deficiency) of cash Financing Etc. . (50,000) 4. Using Schedule 9 as your guide, prepare an absorption costing income statement for the quar ter ending March 31. Prepare a balance sheet as of March 31. 5