PLEASE ONLY COMPLETE REQUIRED 3 & 4!! Thank you!

(^ For REQUIRED 4)

2. 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 general ledger showed the following account balances: Skipped Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings $ 64,000 219,200 61,350 374,000 $ 92, 325 500,000 126,225 $ 718,550 $ 718,550 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) January February March April $274,000 $ 409,000 $ 606,000 $ 321,000 $ 217,000 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, $39,000 per month: advertising, $57,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $45,940 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 $3,400 cash. During March, other equipment will be purchased for cash at a cost of $82,000. 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 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: 1. Schedule of expected cash collections: 2-a. Merchandise purchases budget: 2-b. Schedule of expected cash disbursements for merchandise purchases: 3. Cash budget: 4. Prepare an absorption costing income statement for the quarter ending March 31. 5. Prepare a balance sheet as of March 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) March Quarter Hillyard Company Cash Budget January February $ 64,000 $ 30,480 301,000 448,400 365,000 478,880 Beginning cash balance $ 33, 100 $ 127,580 1,298,400 Add collections from customers 549,000 582,100 Total cash available 1,425,980 Less cash disbursements: 297,900 248,925 776,625 229,800 128,720 45,000 403,520 (38,520) 248,925 297,900 180,980 776,625 649,355 333,175 Inventory purchases Selling and administrative expenses Equipment purchases Cash dividends Total cash disbursements Excess (deficiency) of cash Financing: Borrowings Repayments Interest Total financing Ending cash balance 0 0 0 $ (38,520) $ 180,980 $ 333,175 $ 649,355 Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Prepare an absorption costing income statement for the quarter ending March 31. Hillyard Company Income Statement For the Quarter Ended March 31 Cost of goods sold: 0 0 0 Selling and administrative expenses: 0 0 $ 0 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 Prepare an absorption costing income statement for the quarter ending March 31. Hillyard Company Income Statement For the Quarter Ended March 31 Sales $ 1,336,000 Cost of goods sold: 0 Beginning inventory 0 0 Ending inventory Goods available for sale Purchases 0 0 Net income $ 0 Blank Drop Down Options under Selling and Administrative Expenses: Accounts Payable - Accounts Receivable Advertising Buildings & Equipment, Net - Cash Common Stock COGS - Depreciation Interest Expense Note Payable Other Expenses Prepaid Insurance Rent - Retained Earnings Salaries & Wages - Sales Shipping