Dimitrov Corporation, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:

A. As of December 31 (the end of the prior quarter), the company's general ledger showed the following account balances:

	Debits	Credits
Cash	P 48,000
Accounts receivable	224,000
Inventory	60,000
Buildings and equipment (net)	370,000
Accounts payable		P 93,000
Common stock		500,000
Retained earnings		109,000
	P702,000	P702,000

B. Actual sales for December and budgeted sales for the next four months are as follows:

December (actual)	P280,000
January	400,000
February	600,000
March	300,000
April	200,000

C. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales.

D. The company's gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.)

E. Monthly expenses are budgeted as follows: salaries and wages, P27,000 per month; advertising, P70,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be P42,000 for the quarter.

F. Each month's ending inventory should equal 25% of the following month's cost of goods sold.

G. One-half of a month's inventory purchases is paid for in the month of purchase; the other half is paid in the following month.

H. During February, the company will purchase a new copy machine for P1,700 cash. During March, other equipment will be purchased for cash at a cost of P84,500.

I. During January, the company will declare and pay P45,000 in cash dividends.

J. Management wants to maintain a minimum cash balance of P30,000. The company has an agreement with a local bank that allows the company to borrow in increments of P1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Based on the information above, answer the following:

1. How much is the required purchases for the month ended January 31?
2. How much is the budgeted total cash collections for the month ended February 28?
3. How much is the budgeted total cash disbursements for the month ended March 31?
4. How much is the loan (borrowings) expected to be obtained during the first quarter?
5. What is the budgeted net income for the quarter ended March 31?