C3 THREE-MONTH MASTER BUDGET The balance sheet of Thorny Corp, as of December 31 is as tollows Thorny Corp Balance Sheet at December 31 Assets Cash Accounts receivable Raw materials Finished goods Land Plant and equipment Less: Accumulated depreciation 41,700 192,000 02 240 64 400 $500,000 112,000 388000 Liabilities and Stockholders' Equity Accounts payable to suppliers Common stock Retained earnings 40,000 100,000 698340 798240 The following information has been extracted from Thorny's records 1. Thorny manufactures and sells Gizmos. The company has projected unit sales for ts product for the next five months as follows: rdas for as Tho January February March April May Units 7,000 8,000 10,000 8,000 7,000 aaroe? eies the All sales are made on account. Gizmos sell for $60 each. Forty percent of all sales are collected in the month of sale. The remaining 60% are collected in the following month. ach $1 nventory for Gizmos at 20% of te following month's sales. Thorny's December 31 finished goods inventory consists of 1,400e Gizmos 2. Management desires to maintain the finished goods i 3. In order to produce one Gizmo, the following units of raw materials are used: Units Raw Material What Huh 3 The price of What has recently risen and is now $4 per uni. The price of Hut is $2 80 per Huh at 25% of the following month's production needs. Thorny's December 31 raw materal 196 ventory for both What and unit. Management desires to maintain the ending raw materials in