Hillyerd Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following dats have been sasembled to sasist in preparing the master budget for the first querter: o. As of December 31 (the end of the prior querter), the compony's general ledger showed the following occount bslsnces: b. Actul soles for December and budgeted sales for the next four months are as follows: c. Sales are 20% for cash and 80% on credit All payments on credit sales are collected in the month folloving sale. The accounts receivable at December 31 are a result of December credit sales. d. The compony's gross mergin is 40% of sales. (ln other words, cost of goods sold is 60% of soles.) e. Monthly expenses are budgeted as follows: salaries and wages, $15,000 per month: odvertising. $55,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the qusrter, vill be S42,100 for the quarter. f. Each month's ending inventory should equal 25% of the following month's cost of goods sold. g. One-half of a month's inventory purchases is poid for in the month of purchase; the other half is paid in the following month. h. During February, the company will purchase a new copy mochine for $1,000 cash. During March, other equipment will be purchased for cash st a coat of $70,000 i. During January, the compony wil declare and pay $45,000 in cash dividends. j. Mansgement wents to maintain a minimum cash balance of $30,000. The compsny has sn agreement with a local benk thet allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these losns is 18 per month and for simplicity we will assume that interest is not compounded. The company would, as fer as it is oble, repay the losn plus sccumuleted interest at the end of the qusiter. Requlred: Using the date above, complete the following statements and schedules for the first quarter: 1. Schedule of expected cash collections: 2-a. Merchandise purchsses budget: 2-b. Schedule of expected cosh disbursements for merchandise purchsaes: 3. Cash budget: 4. Prepare an absorption costing income statement for the quarter ending March 31. 5. Prepare o balance sheet as of March 31. Complete this question by entering your ansiwers in the tabs below. Complete the schedule of expected cash disbursements for merchandise purehases