Please answer the missing blanks for 1 and 2b, also 3-5 completely thank you! va
ID: 2569789 • Letter: P
Question
Please answer the missing blanks for 1 and 2b, also 3-5 completely thank you! value: 5.00 points 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 As of December 31 (the end of the prior quarter), the company's general ledger showed the following account balances: a. Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings S 49,00 207,20 59,100 359,000 $87,825 500,000 86,475 $ 674,300 674,300 b. Actual sales for December and budgeted sales for the next four months are as follows: December(actual) January February March April $259,000 $394,000 $591,000 $305,000 $202,000 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 of sales. In other words-costof aoods sold is 60% of sales.)Explanation / Answer
Missing information is as filled below:
Hillyard Company Schedule of expected Cash collections For the quarter ended March 31 Month Particulars January February March Total Sales 394,000 591,000 305,000 1,290,000 Beginning Accounts Receivable December Credit sales (259,000*.8) 207,200 207,200 January sales 78800 315,200 394,000 February sales 118,200 472,800 591,000 March sales 61,000 61,000 Total collections 286,000 433,400 533,800 1,253,200 Account receivable for March sale 244,000 Hillyard Company Merchandise Purchase Budget For the quarter ended March 31 Month Particulars January February March Total Cost of goods sold (60% of sales) 236,400 354,600 183,000 774,000 Add: Desired Ending merchandise inventory 88,650.0 45,750.0 30,300.0 30,300 Total needs 325,050 400,350 213,300 804,300 Less: beginning merchandise inventory 59,100 88,650 45,750 59,100 Required purchase 265,950 311,700 167,550 745,200 Hillyard Company Schedule of expected Cash payments For the quarter ended March 31 Month Particulars January February March Total Beginning Accounts Payable (a) $87,825 $87,825 January Purchases (b) $132,975 $132,975 $265,950 February Purchases (c ) $155,850 $155,850 $311,700 March Purchases (d) $83,775 $83,775 Total payments (a+b+c+d) $220,800 $288,825 $239,625 $749,250 Hillyard Company Cash Budget For the quarter ended March 31 Month Particulars January February March Total Beginning Cash balance 49,000 30,680 38,075 49,000 Add: Collection from customers $286,000 $433,400 $533,800 1,253,200 cash available for use $335,000 $464,080 $571,875 $1,302,200 Less: cash Disbursements Merchandise purchase $220,800 $288,825 $239,625 749,250 Salaries and wages 24,000 24,000 24,000 72,000 Advertising 64,000 64,000 64,000 192,000 Shipping (5% of sales) 19,700 29,550 15,250 64,500 Other exp (3% of sales) 11,820 17,730 9,150 38,700 New Copy machine 0 1,900 0 1,900 Equipment purchase 0 74,500 74,500 Dividend paid 45,000 45000 Total disbusrement 385,320 426,005 426,525 1,237,850 Cash surplus/Deficit -50,320 38,075 145,350 64,350 Financing Borrowing 81,000 81,000 Repayment -81,000 -81,000 Interest -1620 -1,620 Net cash from Financing 81,000 0 -82,620 -1,620 Budgeted ending cash balance 30,680 38,075 62,730 62,730 Hillyard Company Budgeted Income Statement For the quarter ended March 31 Particulars Amount ($) Amount ($) Sales 1,290,000 Less: Cost of goods sold (60% of sales) 774,000 Gross margin 516,000 Less: Selling and administartive exp Depreciation 43,540 Salaries and wages 72,000 Advertising 192,000 Shipping Charges 64,500 Other expenses 38,700 410,740 Net operating Income 105,260 Interest expense 1,620 Net Income 103,640 Dividend Paid 45,000 Net Income 58,640 Hillyard Company Budgeted balance Sheet Mar-31 Assets Cash 62,730 Accounts Receivable 244,000 Inventory 30,300 Building and equipment Net 391,860 Total assets 728,890 Liabilities and Stockholders' Equity Accounts Payable purchases 83,775 Common Stock 500,000 Retained earnings (86,475+58,640) 145,115 Total liabilities and stockholders' equity 728,890