(Solved): Hillyard Company First Quarter Master Budget Ledger balances as of Dec 31: AccountDebitCreditC ...

Hillyard Company — First Quarter Master Budget Ledger balances as of Dec 31: AccountDebitCreditCash59,000Accounts receivable215,200Inventory60,600Buildings & equipment (net)369,000Accounts payable90,825Common stock500,000Retained earnings112,975Total703,800703,800 Sales: Dec (actual): 269,000 Jan: 404,000 Feb: 601,000 Mar: 316,000 Apr: 212,000 Policies & Assumptions: 20% cash, 80% credit; credit collected following month. Gross margin 40% ? COGS = 60% of sales. Ending inventory = 25% of next month’s COGS. Half of inventory purchases paid in month of purchase, half next month. Monthly expenses: salaries $34,000, advertising $62,000, shipping 5% of sales, other 3% of sales. Depreciation = $45,140/quarter. Equipment: Feb $2,900, Mar $79,500 (cash). Dividends: Jan $45,000 (cash). Maintain minimum cash $30,000; borrow in $1,000 increments; 1% monthly interest; repay principal + interest end of quarter.