2 Check my work Hillyard Company, an office supplies specialty store, prenares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: 10 port a. As of December 31(the end of the prior quarter), the company's general ledger showed the following account balances 3 Cau Accounts receivable Taventory Buldings and went (et) Aunts payable Cock Ratind caring 57. 21. 10, 367.000 Bele 50,225 102.25 SANAN b. Actual sales for December and budgeted sales for the next four months are as follow December (actual January re Marchi Roll 267.000 40.000 $599,000 53,000 $210,000 Check my work 2 10 po 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 margint 90% of sales. In other words, cost of goods sold is 60% of sales Monthly expenses are budgeted as follow salaries and wages, $32,000 per month advertising, 564 000 per month, shipping, 5% of sales other expenses, 3% of salen. Depreciation, including depreciation on new assets acquired during the quarter will be $44,820 for the quarter Each month's ending inventory should equal 25% of the following month's cost of goods sold 9. One-half of a months weary purchases is paid for in the month of purchase the other hair is paid in the following month During February, the company will purchase a new copy machine for $2.700 cash During Mach 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 videos 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 $1000 at the beginning of each month. The interest rate on these loans i per month and for simplicity we will assume that interest is not compounded The company would as far bepay the loan plus accumulated interest at the end of the quarter Required: Using the data above, complete the following statements and schedules for the future 1 Schedule of expected cash collection La Merchandise purchases budget 2.b Schedule of expected cash asboursements for merchandise purchase a Cashbudget 4. Prepare an absorption costing income statement for the quarterenang March 31 5. Prepare a balance sheet of March 31 Check my work 2 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 30 points Complete this question by entering your answers in the tabs below. Spoed Required 1 Required 2A Required 28 Required 3 Required 4 Required 5 References Complete the schedule of expected cash collections: Quarter Schedule of Expected Cash Collections January bruary March Cash sales $ 80.400 Credil sales 213.600 Total collections $ 294 000 Required 2 > 2 Complete this question by entering your answers in the tabs below. 10 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 points Complete the merchandise purchases budget: Skipped References March Quarter Merchandise Purchases Budget January February Budgeted cost of goods sold $241 200*| $ 359,400 Add desired ending inventory 89.8507 Total needs 331 050 Less beginning inventory 60.300 Required purchases $ 270,750 "5402.000 sales X 60% cost ratio = $241 200 15359 400 25% = $89.850 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3 Required 4 Required 5 10 points Sipped Complete the schedule of expected cash disbursements for merchandise purchases. References Schedule of Expected Cash Disbursements for Merchandise Purchases January February March Quarter December purchases $ 90.225 January purchases 135 375 135,375 February purchases March purchases Total cash disbursements for purchases 2 Hillyard Company Cash Budget January February $ 57.000 294.000 March Quarter 10 points Skloped 225.600 128. 160 References Beginning cash balance Add collections from customers Total cash available Less cash disbursements Inventory purchases Selling and administrative axpenses Equipment purchases Cash dividends Total cash disbursements Excess deficiency) of cash Financing Borrowings Repayments Interest Total financing Ending cash balance 45,000 398,760 2 Hillyard Company Income Statement For the Quarter Ended March 31 10 points Cost of goods sold Skipped References Selling and administrative expenses Next Pro 2 Hillyard Company Balance Sheet March 31 10 points Assets Current assets. Skloped References Total current assets Total assets Liabilities and Stockholders' Equity Current liabilities Stockholders equity 2 Check my work Hillyard Company, an office supplies specialty store, prenares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: 10 port a. As of December 31(the end of the prior quarter), the company's general ledger showed the following account balances 3 Cau Accounts receivable Taventory Buldings and went (et) Aunts payable Cock Ratind caring 57. 21. 10, 367.000 Bele 50,225 102.25 SANAN b. Actual sales for December and budgeted sales for the next four months are as follow December (actual January re Marchi Roll 267.000 40.000 $599,000 53,000 $210,000 Check my work 2 10 po 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 margint 90% of sales. In other words, cost of goods sold is 60% of sales Monthly expenses are budgeted as follow salaries and wages, $32,000 per month advertising, 564 000 per month, shipping, 5% of sales other expenses, 3% of salen. Depreciation, including depreciation on new assets acquired during the quarter will be $44,820 for the quarter Each month's ending inventory should equal 25% of the following month's cost of goods sold 9. One-half of a months weary purchases is paid for in the month of purchase the other hair is paid in the following month During February, the company will purchase a new copy machine for $2.700 cash During Mach 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 videos 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 $1000 at the beginning of each month. The interest rate on these loans i per month and for simplicity we will assume that interest is not compounded The company would as far bepay the loan plus accumulated interest at the end of the quarter Required: Using the data above, complete the following statements and schedules for the future 1 Schedule of expected cash collection La Merchandise purchases budget 2.b Schedule of expected cash asboursements for merchandise purchase a Cashbudget 4. Prepare an absorption costing income statement for the quarterenang March 31 5. Prepare a balance sheet of March 31 Check my work 2 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 30 points Complete this question by entering your answers in the tabs below. Spoed Required 1 Required 2A Required 28 Required 3 Required 4 Required 5 References Complete the schedule of expected cash collections: Quarter Schedule of Expected Cash Collections January bruary March Cash sales $ 80.400 Credil sales 213.600 Total collections $ 294 000 Required 2 > 2 Complete this question by entering your answers in the tabs below. 10 Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 points Complete the merchandise purchases budget: Skipped References March Quarter Merchandise Purchases Budget January February Budgeted cost of goods sold $241 200*| $ 359,400 Add desired ending inventory 89.8507 Total needs 331 050 Less beginning inventory 60.300 Required purchases $ 270,750 "5402.000 sales X 60% cost ratio = $241 200 15359 400 25% = $89.850 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3 Required 4 Required 5 10 points Sipped Complete the schedule of expected cash disbursements for merchandise purchases. References Schedule of Expected Cash Disbursements for Merchandise Purchases January February March Quarter December purchases $ 90.225 January purchases 135 375 135,375 February purchases March purchases Total cash disbursements for purchases 2 Hillyard Company Cash Budget January February $ 57.000 294.000 March Quarter 10 points Skloped 225.600 128. 160 References Beginning cash balance Add collections from customers Total cash available Less cash disbursements Inventory purchases Selling and administrative axpenses Equipment purchases Cash dividends Total cash disbursements Excess deficiency) of cash Financing Borrowings Repayments Interest Total financing Ending cash balance 45,000 398,760 2 Hillyard Company Income Statement For the Quarter Ended March 31 10 points Cost of goods sold Skipped References Selling and administrative expenses Next Pro 2 Hillyard Company Balance Sheet March 31 10 points Assets Current assets. Skloped References Total current assets Total assets Liabilities and Stockholders' Equity Current liabilities Stockholders equity