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LUIUJ Hillyard Company, an office supplies specialty store, prepares its master bu following data have been assembled to assist in preparing the master budget for a. As of December 31 (the end of the prior quarter), the company's generale account balances: ster budget on a quarterly besi oct for the first quarter cal ledger showed the folle Budge Add o Total Less Requ Debits Credits -540 1$36 Cash Accounts receivable Inventory ..... Buildings and equipment (net). Accounts payable Capital stock. Retained earnings .......... $ 48,000 224,000 60,000 370,000 $ 93,000 500,000 109,000 $702,000 $702,000 b. Actual sales for December and budgeted sales for the next four months are as follows: 3. SC December (actual) ............ January February ......... March April ......... $280,000 $400,000 $600,000 $300,000 $200,000 c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month folio ing sale. The accounts receivable at December 31 are a result of December credit sales. The company's gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales d. Monthly alle Proin Medted as follows. salaries and wages, sz e r e ti 70.00 54 of saless other expenses, oves. Depreciation, including deprecen och s ed during the quarter will be $42.000 for the Game inventory should equal 25% of the following w h's coo l this inventory purchases is paid for in the month of purchase the other walls h. During March llowing the company will purchase a new copy machine for $1.700 por monthshi assets acquired durine Fach month's and One-half of a month's $ in the follow he following month. During February, the During January, the com Management wants to maint with a local bank that month. The interest rate is not compounded the end of the quarter. ant will be purchased for cash at a cost of SA SO the company will declart and pay $45.000 isch maintain a minimum cach balance of 50. The com Donm ent was allows the company to borrow in increments of S1000 t the beginning of each rate on these loans is per month and for simplicity W esome that is many would, as far as Wisable, repay the loan plus times ounded. The company would, as far as it is able complete the following statements and schedules for the Round sing the data above Schedule of expected cash collections Scheous February March Quat Cash sales Credit sales.... Total cash collections January $ 80,000 224.000 $304,000 Merchandise purchases budget: February $360,000 March Quarter Budgeted cost of goods sold Add desired ending Inventory Total needs. Less beginning inventory ............ Required purchases January $240,000 90.0001 330.000 60,000 $270,000 *$400,000 sales X 60% cost ratio - $240,000. *$360,000 x 25% = $90,000. b. Schedule of expected cash disbursements for merchandise purchases: February March January $ 93,000 135,000 Quarter $93.000 270.000 135,000 December purchases ......... January purchases ................... February purchases. March purchases Total cash disbursements for purchases ........ $228,000 Schedule of expected cash disbursements for selling and administrative expenses March Quarter February January $ 27,000 70,000 20,000 Salaries and wages ...... Advertising Shipping Other expenses Total cash disbursements for 12,000 $129,000 Selling and administrative expenses... .4. Cash budget: February March March Qu Quarter January $ 48,000 304,000 352,000 228,000 Cash balance, beginning .... Add cash collections ...... Total cash available Less cash disbursements: Purchases of inventory ... Selling and administrative expenses ...... Purchases of equipmenil .... Cash dividends Total cash disbursements Excess (deficiency) of cash ............ Financing: Elc. 129,000 45,000 402,000 (50,000) 5. Prepare an absorption costing income statement for the quarter ending March 31 as shown in Schedule 9 in the chapter. 6. Prepare a balance sheet as of March 31. LUIUJ Hillyard Company, an office supplies specialty store, prepares its master bu following data have been assembled to assist in preparing the master budget for a. As of December 31 (the end of the prior quarter), the company's generale account balances: ster budget on a quarterly besi oct for the first quarter cal ledger showed the folle Budge Add o Total Less Requ Debits Credits -540 1$36 Cash Accounts receivable Inventory ..... Buildings and equipment (net). Accounts payable Capital stock. Retained earnings .......... $ 48,000 224,000 60,000 370,000 $ 93,000 500,000 109,000 $702,000 $702,000 b. Actual sales for December and budgeted sales for the next four months are as follows: 3. SC December (actual) ............ January February ......... March April ......... $280,000 $400,000 $600,000 $300,000 $200,000 c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month folio ing sale. The accounts receivable at December 31 are a result of December credit sales. The company's gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales d. Monthly alle Proin Medted as follows. salaries and wages, sz e r e ti 70.00 54 of saless other expenses, oves. Depreciation, including deprecen och s ed during the quarter will be $42.000 for the Game inventory should equal 25% of the following w h's coo l this inventory purchases is paid for in the month of purchase the other walls h. During March llowing the company will purchase a new copy machine for $1.700 por monthshi assets acquired durine Fach month's and One-half of a month's $ in the follow he following month. During February, the During January, the com Management wants to maint with a local bank that month. The interest rate is not compounded the end of the quarter. ant will be purchased for cash at a cost of SA SO the company will declart and pay $45.000 isch maintain a minimum cach balance of 50. The com Donm ent was allows the company to borrow in increments of S1000 t the beginning of each rate on these loans is per month and for simplicity W esome that is many would, as far as Wisable, repay the loan plus times ounded. The company would, as far as it is able complete the following statements and schedules for the Round sing the data above Schedule of expected cash collections Scheous February March Quat Cash sales Credit sales.... Total cash collections January $ 80,000 224.000 $304,000 Merchandise purchases budget: February $360,000 March Quarter Budgeted cost of goods sold Add desired ending Inventory Total needs. Less beginning inventory ............ Required purchases January $240,000 90.0001 330.000 60,000 $270,000 *$400,000 sales X 60% cost ratio - $240,000. *$360,000 x 25% = $90,000. b. Schedule of expected cash disbursements for merchandise purchases: February March January $ 93,000 135,000 Quarter $93.000 270.000 135,000 December purchases ......... January purchases ................... February purchases. March purchases Total cash disbursements for purchases ........ $228,000 Schedule of expected cash disbursements for selling and administrative expenses March Quarter February January $ 27,000 70,000 20,000 Salaries and wages ...... Advertising Shipping Other expenses Total cash disbursements for 12,000 $129,000 Selling and administrative expenses... LUIUJ Hillyard Company, an office supplies specialty store, prepares its master bu following data have been assembled to assist in preparing the master budget for a. As of December 31 (the end of the prior quarter), the company's generale account balances: ster budget on a quarterly besi oct for the first quarter cal ledger showed the folle Budge Add o Total Less Requ Debits Credits -540 1$36 Cash Accounts receivable Inventory ..... Buildings and equipment (net). Accounts payable Capital stock. Retained earnings .......... $ 48,000 224,000 60,000 370,000 $ 93,000 500,000 109,000 $702,000 $702,000 b. Actual sales for December and budgeted sales for the next four months are as follows: 3. SC December (actual) ............ January February ......... March April ......... $280,000 $400,000 $600,000 $300,000 $200,000 c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month folio ing sale. The accounts receivable at December 31 are a result of December credit sales. The company's gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales d. Monthly alle Proin Medted as follows. salaries and wages, sz e r e ti 70.00 54 of saless other expenses, oves. Depreciation, including deprecen och s ed during the quarter will be $42.000 for the Game inventory should equal 25% of the following w h's coo l this inventory purchases is paid for in the month of purchase the other walls h. During March llowing the company will purchase a new copy machine for $1.700 por monthshi assets acquired durine Fach month's and One-half of a month's $ in the follow he following month. During February, the During January, the com Management wants to maint with a local bank that month. The interest rate is not compounded the end of the quarter. ant will be purchased for cash at a cost of SA SO the company will declart and pay $45.000 isch maintain a minimum cach balance of 50. The com Donm ent was allows the company to borrow in increments of S1000 t the beginning of each rate on these loans is per month and for simplicity W esome that is many would, as far as Wisable, repay the loan plus times ounded. The company would, as far as it is able complete the following statements and schedules for the Round sing the data above Schedule of expected cash collections Scheous February March Quat Cash sales Credit sales.... Total cash collections January $ 80,000 224.000 $304,000 Merchandise purchases budget: February $360,000 March Quarter Budgeted cost of goods sold Add desired ending Inventory Total needs. Less beginning inventory ............ Required purchases January $240,000 90.0001 330.000 60,000 $270,000 *$400,000 sales X 60% cost ratio - $240,000. *$360,000 x 25% = $90,000. b. Schedule of expected cash disbursements for merchandise purchases: February March January $ 93,000 135,000 Quarter $93.000 270.000 135,000 December purchases ......... January purchases ................... February purchases. March purchases Total cash disbursements for purchases ........ $228,000 Schedule of expected cash disbursements for selling and administrative expenses March Quarter February January $ 27,000 70,000 20,000 Salaries and wages ...... Advertising Shipping Other expenses Total cash disbursements for 12,000 $129,000 Selling and administrative expenses... .4. Cash budget: February March March Qu Quarter January $ 48,000 304,000 352,000 228,000 Cash balance, beginning .... Add cash collections ...... Total cash available Less cash disbursements: Purchases of inventory ... Selling and administrative expenses ...... Purchases of equipmenil .... Cash dividends Total cash disbursements Excess (deficiency) of cash ............ Financing: Elc. 129,000 45,000 402,000 (50,000) 5. Prepare an absorption costing income statement for the quarter ending March 31 as shown in Schedule 9 in the chapter. 6. Prepare a balance sheet as of March 31. LUIUJ Hillyard Company, an office supplies specialty store, prepares its master bu following data have been assembled to assist in preparing the master budget for a. As of December 31 (the end of the prior quarter), the company's generale account balances: ster budget on a quarterly besi oct for the first quarter cal ledger showed the folle Budge Add o Total Less Requ Debits Credits -540 1$36 Cash Accounts receivable Inventory ..... Buildings and equipment (net). Accounts payable Capital stock. Retained earnings .......... $ 48,000 224,000 60,000 370,000 $ 93,000 500,000 109,000 $702,000 $702,000 b. Actual sales for December and budgeted sales for the next four months are as follows: 3. SC December (actual) ............ January February ......... March April ......... $280,000 $400,000 $600,000 $300,000 $200,000 c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month folio ing sale. The accounts receivable at December 31 are a result of December credit sales. The company's gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales d. Monthly alle Proin Medted as follows. salaries and wages, sz e r e ti 70.00 54 of saless other expenses, oves. Depreciation, including deprecen och s ed during the quarter will be $42.000 for the Game inventory should equal 25% of the following w h's coo l this inventory purchases is paid for in the month of purchase the other walls h. During March llowing the company will purchase a new copy machine for $1.700 por monthshi assets acquired durine Fach month's and One-half of a month's $ in the follow he following month. During February, the During January, the com Management wants to maint with a local bank that month. The interest rate is not compounded the end of the quarter. ant will be purchased for cash at a cost of SA SO the company will declart and pay $45.000 isch maintain a minimum cach balance of 50. The com Donm ent was allows the company to borrow in increments of S1000 t the beginning of each rate on these loans is per month and for simplicity W esome that is many would, as far as Wisable, repay the loan plus times ounded. The company would, as far as it is able complete the following statements and schedules for the Round sing the data above Schedule of expected cash collections Scheous February March Quat Cash sales Credit sales.... Total cash collections January $ 80,000 224.000 $304,000 Merchandise purchases budget: February $360,000 March Quarter Budgeted cost of goods sold Add desired ending Inventory Total needs. Less beginning inventory ............ Required purchases January $240,000 90.0001 330.000 60,000 $270,000 *$400,000 sales X 60% cost ratio - $240,000. *$360,000 x 25% = $90,000. b. Schedule of expected cash disbursements for merchandise purchases: February March January $ 93,000 135,000 Quarter $93.000 270.000 135,000 December purchases ......... January purchases ................... February purchases. March purchases Total cash disbursements for purchases ........ $228,000 Schedule of expected cash disbursements for selling and administrative expenses March Quarter February January $ 27,000 70,000 20,000 Salaries and wages ...... Advertising Shipping Other expenses Total cash disbursements for 12,000 $129,000 Selling and administrative expenses

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