ter 8 - Homework (Algorithmic 3) Problem 8-31 (REV) Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10) 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: $ Cash Recounts receivable Inventory Buildings and equipment (net) Recounts payable Common stock Retained earnings 46,000 204,800 58,650 356,000 $ 86.925 500,000 78.525 $ 665,450 $ 665,450 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) January February Mareh $256,000 $391.000 $588,000 $302.000 $199.000 April c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts rarenhla at eromhar 31 are reciit nf Daromhar prartit ealee 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 28 Required 3 Complete the merchandise purchases budget: March Quarter Merchandise Purchases Budget January February Budgeted cost of goods sold 234,600 $ 352,800 Add desired ending inventory 88.2007 Total needs 322,800 Less beginning inventory 58,650 Required purchases $ 264,150 "$391,000 sales * 60% cost ratio $234,600. 1$352,800 * 25% = $88,200. Required 1 Required 2A Required 28 Required 3 Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign. Hillyard Company Cash Budget January February $ 46,000 283,000 March Quartet 219,000 113,280 Beginning cash balance Add cash collections Total cash available Less cash disbursements: 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 45,000 377,280 Required 28