10 prepare a master budget for January. February, and March, use the following information. a. The company's single product is purchased for $30 per unit and resold for $59 per unit. The inventory level of 5,000 units on December 31 is more than management's desired level, which is 20% of the next month's budgeted sales units. Budgeted sales are January, 6,500 units; February, 8,500 units; March, 11,500 units; and April, 9,000 units. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $240,050; February, $703,836; March, $520,735. c. Cash payments for merchandise purchases are budgeted as follows: January, $70,000; February, $324,200; March, $131,400. month. e. General and administrative salarios are $13,000 per month. Maintenance expense equals $2,000 per month and is paid in cash. f. New equipment purchases are budgeted as follows: January, $38,400; February, $98,400; and March, $26,400. Budgeted depreciation expense is January, $5,900; February, $6,925; and March, $7,200. 9. The co month. h. The company has an agreement with its bank to obtain additional loans as needed. The interest rate is 1% per month and interest is paid at each month-end based on the beginning-month balance. Partial or full payments on these loans are made on the last day of i. The income tax rate for the company is 44%. Required: Prepare a master budget for the months of January, February, and March that has the following budgets: 1. Sales budgets. 2. Merchandise purchases budgets. 3. Selling expense budgets. 4. General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. 5. Capital expenditures budgets. 6. Cash budgets. 7. Budgeted income statement for entire quarter (not monthly) ended March 31 . 8. Budgeted balance sheet as of March 31 . Complete this question by entering your answers in the tabs below. Sales budgets