Question

pls answer, some are filled in you can start at 2a

1 Hillyard Company, an office supples 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: 10 paints eBook 55,000 Cash Print 212,000 References Accounts receivable 60,000 Inventory Buildings and equipment (net) 365,000 89,625 Accounts payable 500,000 Common stock 102,375 Retained earnings 692,000s 692,000 $

Answer 1

Calculation Jan Feb Mar Feb 597,000 Mar 312,000 Quarter 1,309,000 Hillyard Co Schedule of expected cash collections Req1 Jan Sales 400,000 Cash collections Cash sales 80,000 Credit sales 212,000 Total cash collections 292,000 -400,000*20% 119,400 320,000 439,400 62,400 477,600 540,000 261,800 1,009,600 1,271,400 =597,000*20% -400,000*80% =312,000*20% =597,000*80% Merchandise Purchase budget Req 2a Jan Budgeted Cost of Goods Sold 240,000 Add Desired Ending Inventory 89,550 Total Needs 329,550 Less Beginning Inventory 60,000 Required Purchases 269,550 Jan -400,000*60% =358,200*25% Feb =597,000*60% =187,200*25% Mar =312,000*60% =208,000*60%*25% Feb 358,200 46,800 405,000 89,550 315,450 Mar 187,200 31,200 218,400 46,800 171,600 Quarter 785,400 31,200 816,600 60,000 756,600 End Inv of Jan End Inv of Feb Jan Feb Mar Schedule of expected cash disbursements-Purchases Reg 2b Jan Feb Mar Dec purchases - Accts Payable 89,625 Jan Purchases 134,775 134,775 Feb Purchases 157,725 157,725 Mar Purchases - 85,800 Total payments for purchases 224,400 292,500 243,525 =269,550/2 Quarter 89,625 269,550 315,450 85,800 760,425 =269,550/2 =315,450/2 =315,450/2 =171,600/2 Jan Feb Mar Jan 55,000 292,000 347,000 Feb 30,600 439,400 470,000 Mar 31,240 540,000 571,240 Quarter 55,000 1,271,400 1,326,400 224,400 128,000 292,500 143,760 2,500 243,525 120,960 77,500 =30,000+66,000+(400,000*(5%+3%)) =30,000+66,000+(597,000*(5%+3%)) =30,000+66,000+(312,000*(5%+3%)) Cash budget Req3 Cash balance, beginning Add Cash collections Total cash available Less cash disbursements Inventory Purchases Selling & admin expenses Equipment purchases Dividends Total Cash disbursements Excess (deficiency) of cash Financing Borrowings Repayments Interest at 1% per month Total financing Cash balance, ending 760,425 392,720 80,000 45,000 1,278,145 48,255 45,000 397,400 (50,400) 438,760 31,240 441,985 129,255 81,000 81,000 =51,000+30,000 (81,000) Round off deficiency of $50,400 to $51,000 for borrowings calculation (2,430) (2,430) 45,825 (81,000) (2,430) (83,430) 45,825 =81,000*1%*3 81,000 30,600 31,240

Calculation 1,309,000 785,400 523,600 Income Statement Req4 Sales Cost of goods sold Beginning Inventory 60,000 Purchases 756,600 Goods Available for Sale 816,600 Less: Ending Inventory (31,200) Cost of goods sold Gross Margin Selling & Admin expenses Advertising 198,000 Salaries and wages 90,000 Shipping 65,450 Depreciation 44,500 Other expenses 39,270 Total Selling & Admin expenses Net Operating income Interest expense Net income =66,000*3 =30,000*3 =1,309,000*5% =1,309,000*3% 437,220 86,380 2,430 83,950 Balance Sheet Req5 Assets Cash 45,825 249,600 31,200 =312,000*80% Accounts Receivable Inventory Total current assets Buildings & Equipment, net Total Assets 326,625 400,500 727,125 =365,000+80,000-44,500 85,800 =171,600/2 85,800 Liabilities & Equity Current Liabilties Accounts Payable Total Current Liabilties Stockholders Equity Common Stock Retained Earnings Total Stockholders Equity Total Liabilities & Equity 500,000 141,325 =102,375+83,950-45,000 641,325 727,125