a.	As of December 31 (the end of the prior quarter), the company's General Ledger shows:
				Debits	Credits
	Cash			$ 229,000
	Accounts Receivable			159,250
	Inventory			33,000
	Buildings & Equipment (Net of Depreciation)			550,000
	Accounts Payable				$ 112,000
	Capital Stock				461,750
	Retained Earnings				397,500
				$ 971,250	$ 971,250
b.	Actual Sales for December and budgeted sales for the next four months are as follows:
		December (Actual)		$ 245,000
		January		750,000
		February		500,000
		March		375,000
		April		299,500
c.	Sales are 25% for cash and 75% on credit. All payments on credit sales are colected in the month following the sale. The accounts receivable at December 31 are a result of December credit sales.
d.	The company's gross profit rate is 45% of gross sales.
e.	Monthly expenses are budgeted as follows: salaries and wages, $75,000 per month; advertising, $55,000 per month; shipping, 5.6% of sales; depreciation, $19,000 per month; other expenses, 3% of sales.
f.	At the end of each month, inventory is to be on hand equal to 20% of the following month's sales needs, stated at cost.
g.	40% of a month's inventory purchases is paid for in the month of purchase; the other 60% is paid for in the following month.
h.	If required, make necessary assumptions and state them in the answer document.