Hltyard Company, an office supplies specdalty store, prepares its master budget on a quarterly bass. 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 quarten, the company's general ledger showed the following account balances Cash S46,800 800 SB,658 356,000 Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings $ 86,925 78,525 S665,458 665,458 b. Actual sales for December and budgeted sales for the next four months are as follows December(actual) January February 5 391,eee $ 588,00e 5382,eee s 199,ee6e April C. Sales are 20% for cash and 80% on credit. Al I payments on credit saies are collected ih the month fo following saie recelvable at December 31 are a result of December credit sales d The company's gross margin is 40% of sales in otner words, c cost of goods sold Is 60% of sales.) thly expenses are budgeted as follows salaries and wages, $21,000 per month: acvermis ng s61000 per month: smipping, 5x of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the guartet will be $43.060 for the quarter t Each month's ending inventory should equal 25% ofthe following month's cost of gooos sou One-half of a month's inventory purchases is pald for in the month of purchase the other ha f is paid in the forowing month March, other equlpment Wil be purchased the company wll purchase a new cooy machine for $1.600 cash. D for cash at a cost of $73.000 t During January, the company will deciare and pay $45.000 in cash dvidends , Management wants to maintain a minimum cash balance of $30000. The company hes en agreement wth a local Dank that the company to borrow in Increments of $1.000 at the beginging of each month. The Interest rate on these loans is 1s per month e hat interest is not compounded The company wou as tar s ti ple repey the losnpus accumulated interest at the end of the querter