Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following 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: Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings $ 62,000 217,600 61,050 372,000 $ 91,725 500,000 120,925 $ 712,650 $ 712,650 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) January February March. April $ 272,000 $ 407,000 $ 604,000 $ 319,000 $ 215,000 c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following saie. 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. $37.000 per month: advertising. $59.000 per munin