Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following clats sve been assembled to assist in preparing the master budget for the first quarter: . As of December 31(the end of the prior quarter, the company's general ledger showed the following account balances Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings 57,820 213, 68,320 357.000 $ 98,225 580.00 127,625 697,900 $ 607.00 b. Actual sales for December and budgeted sales for the next four months are ss follows: December (actual) January February March $257, $422, $599,00 $314.00 $210.000 c Selesare 20% for cash and 90% on credit. All payments on creditssles are collected in the month following asle. The sccounts 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. - Monthly expenses are budgeted as follows: salaries and wages. $32000 per month advertsing, $64,000 per month; shipping, 5% of sales other expenses 35 of sales. Depreciation, including depreciation on new assets acquired during the quarter will be $44.820 for the quarter. Esch month's ending inventory should equal 25% of the following month's cost of goods sold 9. One-hat of a month's inventory purchases is paid for in the month of purchase the other half is paid in the following month In During February, the company will purchase a new copy machine for $2,700 cash. During March, other equipment will be purchased for cash at a cost of $78.500 L During January, the company will declare and pay $45,000 in cash didends. 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 S1000 st the beginning of each month. The interest rate on these loans 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 st the end of the quarter. Required: Using the data above, complete the following statements and schedules for the first quarter 3. Cash ouaget 4. Prepare an absorption costing Income statement for the quarter ending March 31 5. Prepare a balance sheet as of March 31