Hillyard Company, 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: Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings Debits $ 45,000 204,000 58,500 355,000 Credits $ 86,625 500,000 75,875 $ $ 662,500 662,500 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) January February March April $ 255,000 $ 390,000 $ 587,000 $ 301,000 $ 198,000