plz answer 1,2a,2b,3,4,5,6

Hancock Company, a merchandising company, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the second quarter. a. As of December 31 (the end of the prior quarter), the company's balance sheet showed the following account balances: $ 4,500 43,200 16,800 125,000 Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings $ 37,000 105,000 47,500 189,500 $ 189,500 b. Actual and budgeted sales are as follows: $ 72,000 $120,000 $116,000 $ 100,000 $ 20,000 December(actual) January February March April C. Sales are 40% for cash and 60% on credit. All payments on credit sales are collected in the month d. The company's gross margin percentage is 30% of sales. (In other words, cost of goods sold is 70% of e. Each month's ending inventory should equal 20% of the following month's budgeted cost of goods sold. following the sale. The accounts receivable at December 31 are a result of December credit sales. sales.) f. One-quarter of a month's inventory purchases is paid for in the month of purchase; the other three- g. Monthly expenses are as follows: commissions, $19,500; rent, $3,150; other expenses (excluding h. Equipment will be acquired for cash: $4,330 in January and $8,600 in February. quarters is paid for in the following month. The accounts payable at December 31 are the result of December purchases of inventory depreciation), 8% of sales. Assume that these expenses are paid monthly. Depreciation is $3,050 for the quarter and includes depreciation on new assets acquired during the quarter. i. Management would like to maintain a minimum cash balance of $5,000 at the end of each month. 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, up to a total loan balance of $50,000. 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 second quarter: 1. Schedule of expected cash collections: Hancock Company Schedule of Expected Cash Collections Quarter Total February March January $ 48,000 Cash sales Credit sales Total collections 43,200 $ 91,200 $ 0 2a. Merchandise purchases budget. Hancock Company Merchandise Purchases Budget January February MarchQuarter Total Budgeted cost of goods sold 84,000 $ 81,.200 16,240 Total needs 100,240 81,200 16,800 Required purchases S 83,440 $ 8,200 S 2b. Schedule of expected cash disbursements for merchandise purchases: Hancock Company Schedule of Cash Disbursements for Purchases March Quarter- Total $ 37,000 83,440 JanuaryFebruary $ 37,000 62,580 January purchases February purchases March purchases Total cash disbursements for purchases S 57,860 S62,580$ 20,860 0 $ 120,440 2b. Schedule of expected cash disbursements for merchandise purchases: Hancock Company Schedule of Cash Disbursements for Purchases January $ 37,000 February March Quarter Total $ 37,000 83,440 December purchases* January purchases February purchases March purchases Total cash disbursements for purchases $ 57,860 20,860 62,580 62,580$ 0 $ 120,440 Beginning balance of the accounts payable. 3. Schedule of expected cash disbursements for selling and administrative expenses: Hancock Company Schedule of Cash Disbursements for Selling and Administrative Expenses February January MarchQuarter Total $ 19,500 3,150 9,600 Commissions Rent Other expenses Total cash disbursements for seling and 32,250 $ administrative expenses 4. Cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Hancock Company Cash budget January February MarchQuarter - Total $ 4,500 91,200 95,700 Cash balance, beginning Add cash collections Total cash available Less cash disbursements: 0 For inventory For operating expenses For equipment 57,860 32,250 4,330 94,440 Total cash disbursements Excess (deficiency) of cash Financing ash1260 Borrowings Repayments Interest 0 Total financing Cash balance, ending 0 $1.260 $ 0 $ 5. Prepare an absorption costing income statement for the quarter ending March 31. (Losses should be indicated by a minus sign.) Hancock Company Income Statement For the Quarter Ended March 31 Cost of goods sold 0 Selling and administrative expenses: 0 Net income(loss)