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:

As of December 31 (the end of the prior quarter), the company's general ledger showed the following account balances: a. Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings $ 52,000 209,600 59,550 362,000 $ 88,725 500,000 94,425 S 683,150 683,150 b. Actual sales for December and budgeted sales for the next four months are as follows: December(actual) January February March April $262,000 $397,000 $594,000 $308,000 $205,000