Betty DeRose, Inc. manufactures a single product. The company is in the process of preparing its 2026 master budget and has the following information available: (1) At January 1, 2026, Betty had $16,200 of cash on hand. (2) The company has budgeted the following sales (all sales are made on account): Sales are collected in the pattern 60 percent in the month of sale, 25 percent in the first month after the sale, and 15 percent collected in the second month after the sale. Total sales in November and December, 2025 were $425,000 and $375,000, respectively. (3) From its production budget, the company has budgeted the following units to be produced: Each unit produced requires 10 pounds of direct materials. Betty desires her ending direct materials inventory for each month to be equal to 25% of the next month's production needs. Assume that 26,000 units are budgeted to be produced in April and direct materials are purchased at $0.60 per pound. (4) Direct material purchases are paid in full during the month following purchase. In December, 2025, direct material purchases totaled $200,000. (5) In addition to the direct material purchases, the company expects to incur the following monthly costs in 2026 (all costs are paid in the month they are incurred): The budgeted overhead includes $20,000 per month in depreciation and the budgeted selling \& administrative costs include $10,000 per month in depreciation. (6) Betty expects to borrow $24,000 from the bank during January. Betty will repay $10,000 of the loan plus $120 of interest in February. Betty will repay the remaining $14,000 of the loan plus $280 of interest in March