George's Gutters Company, a local company that repairs and installs fencing and gutters in residential properties, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the second quarter.

a.As of December 31 (the end of the prior quarter), the company's balance sheet showed the following account balances:

Cash $ 6,700 Accounts receivable 36,900 Inventory 12,000 Buildings and equipment (net) 140,000 Accounts payable $ 53,750 Common stock 100,000 Retained earnings 41,850 $195,600 $195,600January February March Total Budgeted cost of goods Add desired ending inventory Total needs Less beginning inventory 12,000.00 Required purchasesJanuary February March Total December purchases $53,750.00 January purchases February purchases March purchases Total cash disbursements for purchasesJanuary February March Total Commissions $0.00 Rent 5,000.00 Other expenses 17,000.00 Total cash disbursements for selling and administrative expenses $22,00.00 Noncash S&A Depreciation $1,000.00January February March Total Cash balance, beginning $ 6,700.00 Add cash collections Total cash available Less cash disbursements: For inventory For selling and administrative For equipment purchases For dividends Total cash disbursements Excess (deficiency) of cash Financing Borrowings Repayments Interest Total Financing Ending Cash Balance