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 $44,000 203,200 58,350 354,000 86,325 500,000 73,225 $ 659,550 $ 659,550 b. Actual sales for December and budgeted sales for the next four months are as follows