Please help to answer these questions
Prepare an absorption costing income statement for the quarter ending March 31 . \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Hillyard Company } \\ \hline \multicolumn{4}{|c|}{ Income Statement } \\ \hline \multicolumn{4}{|c|}{ For the Quarter Ended March 31} \\ \hline Sales & ( & & \\ \hline \multicolumn{4}{|l|}{ Cost of goods sold: } \\ \hline Beginning inventory & 2 & & \\ \hline Purchases & ( & & \\ \hline Goods available for sale & & 0 & \\ \hline Ending inventory & ( & & 0 \\ \hline Gross margin & ( & & 0 \\ \hline \multicolumn{4}{|c|}{ Selling and administrative expenses: } \\ \hline Salaries and wages & & & \\ \hline Advertising & ( & & \\ \hline Shipping & ( & & \\ \hline Depreciation & 2 & & \\ \hline \multirow[t]{2}{*}{ Other expenses } & & & \\ \hline & & & 0 \\ \hline Net operating income & & & 0 \\ \hline Interest expense & 2 & & \\ \hline Net income & & $ & 0 \\ \hline \end{tabular} Complete the cash budget. Note: Cash deficiency, repayments and interest should be indicated by a minus sian. Prepare a balance sheet as of March 31 . b. Actual sales for December and budgeted sales for the next four months are as follows: 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, $20,000 per month; advertising, $60,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,900 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 $1,500 cash. During March, other equipment will be purchased for cash at a cost of $72,500. 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 allowing it 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 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
