Construct the first quarter master budget based on the following expectations: a. October sales are estimated to be $600,000 of which $120,000 will be cash sales and $480,000 will be on credit. The company expects sales to grow 8% per month for the first few months of operation. Prepare a sales budget for the first quarter.

b. The company expects to collect 25% of accounts receivable in the month of sale and 75% the following month. Prepare a schedule of expected cash receipts for the first quarter.

c. Cost of goods sold will be 65% of sales. Company policy is to budget an ending inventory balance equal to 20% of the next months projected cost of goods sold. Assume Dryden expects January 2023 cost of goods sold to be $490,000. Prepare an inventory purchases budget.

d. All inventory purchases are on account. The company pays 40% of accounts payable in the month of purchase. It pays the remaining 60% in the following month. Prepare a schedule of expected cash payments for inventory purchases.