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 $ 49,000 207,200 59,100 359,000 $ 87,825 500,000 86,475 $ 674,300 $ 674,300 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) January February March April $ 259,000 $ 394,000 $ 591,000 $ 305,000 $ 202,000