Saved Problem 8-31 (Algo) Completing a Master Budget (LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, L08-10] Hilyard Company, an off

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Saved Problem 8 31 Algo Completing A Master Budget Lo8 2 Lo8 4 Lo8 7 Lo8 8 Lo8 9 L08 10 Hilyard Company An Off 1 (27.67 KiB) Viewed 53 times

Saved Problem 8 31 Algo Completing A Master Budget Lo8 2 Lo8 4 Lo8 7 Lo8 8 Lo8 9 L08 10 Hilyard Company An Off 2 (35.76 KiB) Viewed 53 times

Saved Problem 8 31 Algo Completing A Master Budget Lo8 2 Lo8 4 Lo8 7 Lo8 8 Lo8 9 L08 10 Hilyard Company An Off 3 (25.41 KiB) Viewed 53 times

Saved Problem 8 31 Algo Completing A Master Budget Lo8 2 Lo8 4 Lo8 7 Lo8 8 Lo8 9 L08 10 Hilyard Company An Off 4 (42.6 KiB) Viewed 53 times

Saved Problem 8 31 Algo Completing A Master Budget Lo8 2 Lo8 4 Lo8 7 Lo8 8 Lo8 9 L08 10 Hilyard Company An Off 5 (31.5 KiB) Viewed 53 times

Saved Problem 8 31 Algo Completing A Master Budget Lo8 2 Lo8 4 Lo8 7 Lo8 8 Lo8 9 L08 10 Hilyard Company An Off 6 (26.24 KiB) Viewed 53 times

Saved Problem 8 31 Algo Completing A Master Budget Lo8 2 Lo8 4 Lo8 7 Lo8 8 Lo8 9 L08 10 Hilyard Company An Off 7 (44.95 KiB) Viewed 53 times

Saved Problem 8-31 (Algo) Completing a Master Budget (LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, L08-10] Hilyard 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 As of December 31(the end of the prior quarter), the company's general ledger showed the following account balances Credits Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings Debits $ 63,600 218,400 61,200 373,000 $ 92,025 500,000 123,525 $ 715,600 5 715,600 b. Actual sales for December and budgeted sales for the next four months are as follows: December(actual) January February March April $ 273,000 $408.000 $ 605,000 $ 120,000 $216,000
5. Actual sales for December and budgeted sales for the next four months are as follows: December(actual) January February March $ 273,000 5 408,000 $ 505,00 $ 320,000 $216,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sele The accounts receivable at December 31 ore 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, $38,000 per month advertising. $58,000 per month, shipping. 5 of as other expenses. 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter will be $45 780 for the quarter 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 paid for in the month of purchase the other half is paid in the following month n. During February, the company will purchase a new copy machine for $3,300 cash. During March other equipment will be purchased for cash at a cost of $81,500 During January, the company will declare and pay $45.000 in cash dividends Management wo 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 simpacity we will assume that interest is not compounded. The company would, as far as it is able repay the loon plus accumulated interest at the end of the quarter
Required: Using the data above, complete the following statements and schedules for the first quarter 1 Schedule of expected cash collections: 2-a. Merchandise purchases budget: 2-6. 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.
I WON 5 Prepare a balance sheet as of March 31 Complete this question by entering your answers in the tabs below. Required i Required 2A Required 28 Required 3 Required 4 Required s Complete the schedule of expected cash disbursements for merchandise purchases. Schedule of Expected Cash Disbursements for Merchandise Purchases January February March Quarter December purchases $ 92.025 $ 92025 January purchases 137,175 137 175 214 2150 February purchases 160.125 160,125 320,250 Mach purchases 88.200 88 200 Total cash disbursements for purchases $ 229,200 $ 297,300 $ 248 325$ 774,825 < Required 2A Required 3 >
lequered 1 Required 2A Required 25 Required Required Required 5 50 port Complete the cash budget. (Cich deficiency, repayments and interest should be indicated by a minus Hillyard Company Cash Butt $ 63.000 300.000 30,150 $ 447 400 4770 Duarter 22.500 5 83.000 548.000 1295 400 580.500 1,358 400 000 DE Begang cash balance Ascochon rom customer Total cash wie Less tash disburs Inventory pathaes Sing and depende Ement per Cash dividende Tito cash disbursement 207300 240.325 774,825 229 200 1285401 1 500 000 45 000 402 840 229825 201300 110.200 15.000 90125 4707 Lord Bour 70.000 Hoewing Hayes 70.000 1,400 71-400 222.135 S 70.000 Cro (1.400 (1.4001 455675 10.000 30 100 5 Ending 5 100 200 < Required 25 Retured 4 >
1 Red hequred A Houred 2 Required Required 4 Required 5 50 poets Prepare an absorption costing income statement for the quarter ending March 31 Hey Cany inome Statement For the Ended March 1 book $ 1330.000 0 Con of goods Beginning inventory Parc Goodwoo Ending intory Crown Then and where as and we Acto 0 0 Othere 0 Cowda Required)
6 Saved Required 1 Required 2A Required 2B Required 3 Required 4 Required 5 $ 57,735 Hillyard Company Balance Sheet March 31 Assets Current assets Cash Accounts receivable Inventory Buildings and equipment, net Prepaid insurance Total current assets Retained earnings Total asets Liabilities and Stockholders' Equity Current liabi Accounts payable 57,735 $ 57,735 Stockholders equity Canon stock Retained earnings Accouche Totales and holders gut 0 0 5 < Required 4