Nadia Company, a merchandising company, prepares its master budget on a quarterly basis. The following data has been assembled to assist in preparation of the master budget for the second quarter.

a. As of March 31 (the end of the prior quarter), the companys balance sheet showed the following account balances:

Cash	$9,000
Accounts receivable	48,000
Inventory	12,600
Buildings and equipment (net)	214,100
Accounts payable		18,300
Common Stock		190,000
Retained earnings		75,400
Totals	$283,700	$283,700

b. Sales for March total 10,000 units. Each months sales are expected to exceed the prior months results by 5%. The product selling price is $25.00 per unit.