Developing a Master Budget for a Merchandising Organization Peyton Department Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2010. PEYTON DEPARTMENT STORE Balance Sheet March 31, 2010 Liabilities and Stockholders' Assets Equity $2,000 Cash Accounts payable $26,000 Accounts receivable 25,000 Dividends payable 17.000 30,000 Inventory Rent payable 1.000 2,000 Prepaid Insurance Stockholders' equity 40,000 25,000 Fixtures Total assets $84,000 Total liabilities and equity $84,000