Problem 8-31 (Algo) Completing a Master Budget (LO8-2, L08-4, LO8-7, LO8-8, LO8-9, L08-10] 25 Dots 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 Credits Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings Debits $ 61,000 216,00 60,00 171.000 91/425 500,000 118,275 $ 209,700 $ 709,700 b. Actual sales for December and budgeted sales for the next four months are as follows: December(actual) January February March April $ 271.000 $400,000 $3,000 $310,000 $ 214.000 Mainbytes Ant- Databases Out of Date c. Sales are 20% for cash and 80% on credit All payments on credit sales are collected in the month following sale receivable at December 31 are a result of December credit sales 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 merchandise purchases budget: March Quarter Merchandise Purchases Budget January February Budgeted cost of goods sold $243,600" $ 361,800 Add desired ending inventory 90,4501 Total needs 334,050 Less beginning inventory 60,900 Required purchases -$406,000 sales x 60% cost ratio = $243,600. +$361,800 x 25% = $90,450. 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 merchandise purchases budget: March Quarter Merchandise Purchases Budget January February Budgeted cost of goods sold $243,600" $ 361,800 Add desired ending inventory 90,4501 Total needs 334,050 Less beginning inventory 60,900 Required purchases -$406,000 sales x 60% cost ratio = $243,600. +$361,800 x 25% = $90,450.