et Project Help Save & Problem 8-31 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, L08-9,LO8-10) en office supplies specialty store, prepares t its master budget on a quarterly basis. The following data have been on a 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 42,00 BLldings and Aocounta pay 352.00 5 85,325 500,00 653,650 $653,650 b. Actual sales for December and budgeted sales for the next four months are as follows 252,00D 584,000 $298,000 Apri 195,000 c. Sales are 20% for cash and 80% on cred. Al payments on credit snies are collected in the month following sale. The accouts receivable at December 31 are a result of December credit sales The company's gross margin is 40% of sales. On other words, cost of goods sold is 60% or sari Monthly expenses are budgeted es follows sal ies and wages. ST7O00 per month advertising, $57000 per mon of sales; other expenses. 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter wil be $42,420 for the quarter d. e. t sh 01 g 5% t Each month's ending inventory should equal 25% of the following month's cost of goods sold. g. One-haif of a month's inventory purchases is paid for in the month of purchase, the other haif is paid in the following month h. During February, the company will purchase a new copy machine for $1.200 cash. During March, other equipment will be purchased C Prev3 of3 Next MacBook Air 20