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Servod Help Save 2 Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled

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Servod Help Save 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 50 points Dook Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings 56,000 212,300 60,150 366.000 Print Deferences $ 9,935 500,000 $694,950 5694,950 b. Actual sales for December and budgeted sales for the next four months are as follows: December actual January bay 3200,000 5401,000 150.000 1,00 5209.00 April ME Gram 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, $31.000 per month advertising, $65,000 per month; shipping, 5% of sales other expenses, 3% of sales Depreciation, including depreciation on new assets acquired during the quarter will be 544,660 for the quarter. f Each month's ending inventory should equal 25% of the following month's cost of goods sold. 9. 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 Duting February, the company will purchase a new copy machine for $2,600 cash. During March, other equipment will be purchased for cash at a cost of $78.000. 1. During January, the company will declare and pay $45.000 in cash dividends. 1. 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 2 4. Prepare an absorption cosung income statement for the quarter enaing march 31. 5. Prepare a balance sheet as of March 31, Complete this question by entering your answers in the tabs below. 50 points Required 1 Required 2A Required 28 Required 3 Required 4 Required 5 Book Complete the Schedule of expected cash collections: Print References Quarter Schedule of Expected Cash Collections January February March Cash sales $ 80,200 Credit sales 212.800 Total collections $ 293000 Required 2A > 2 Complete this question by entering your answers in the tabs below. 50 points Required 1 Required 2A Required 28 Required 3 Required 4 Required 5 Complete the merchandise purchases budget: eBook Print March Quarter Preferences Merchandise Purchases Burget January February Budgeted cost of goods sold $240,600' 5 358,800 Add desired ending inventory 89,700+ Total needs 330,300 Less beginning tnventory 60150 Required purchases $ 270.150 "$401 000 sales x 60% cost ratio $240.600 15358.800 * 25% - $89,700 2 Complete this question by entering your answers in the tabs below. 50 Required 1 Required 2A Required 2B points Required 3 Required 4 Required 5 Complete the schedule of expected cash disbursements for merchandise purchases. eBook Print References Schedule of Expected Cash Disbursements for Merchandise Purchases January February March Quarter December purchases $89.925 January purchases 135 075 35.075 February purchases March purchases Total cash disbursements for purchases 2 Hillyard Company Cash Hudget January February $ 56,990 293,000 March Quarter 50 points eBook Print 225,000 128.080 References Beginning cash balance Add collections from customers Total cash available Loss cash disbursements Inventory purchases Selling and administrative expenses Equipment purchases Cash dividends Total cash disbursements Exco (deficiency) of cash Financing Borrowings Repayments Interest Total financing Ending cash balance 45,000 398,080 MC 2 For the Quarter Ended March 31 Cost of goods sold 50 points eBook Print References Selling and administrative expenses 2 Hillyard Company Balance Sheet March 31 Assets 50 points Current assets eBook Print References Total current assets Total assets Liabilities and Stockholders' Equity Current liabilities Stockholders equity (Me 2 Current assets: 50 points Total current assets eBook Print Total assets References Liabilities and Stockholders' Equity Current liabilities Stockholders' equilty Total abilities and stockholders equity

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