Developing a Master Budget for a Merchandising Organization Assume Nordstrom prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for one of its stores (in thousands). NORDSTROM Balance Sheet March 31 Liabilities and Stockholders' Equity $ 2,525 Merchandise purchases payable $2,400 710 Dividends payable Stockholders' equity 8,005 Assets Cash Accounts receivable 2,040 Inventory 3,400 Prepaid Insurance Fixtures 150 3,000 Total assets $11,115 Total liabilities and equity $11,115 Actual and forecasted sales for selected months in the upcoming year are as follows: Month (in thousands) Sales Revenue January $2,600 February 2,700 March 3,000 April 3,600 May 3,800 June 3,500 July 3,200 August 4,000 Monthly operating expenses are as follows: Wages and salaries $750 Depreciation 75 Advertising 55 Other costs 350