Near the end of 2015, the management of Fancy Furnishings Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2015.

A. Fancy Furnishings single product is purchased for $20 per unit and resold for $59 per unit. The expected inventory level of 5,000 units on December 31, 2015, is more than managements desired level for 2016, which is 20% of the next months expected sales (in units). Expected sales are: January, 7,250 units; February, 9,500 units; March, 10,750 units; and April, 10,000 units.

B. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 68% is collected in the first month after the month of sale and 32% in the second month after the month of sale. For the December 31, 2015, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February.

Near the end of 2015, the management of Fancy Furnishings Co., a merchandising company, prepared the following estimated balance sheet for December 31,2015. FANCY FURNISHINGS COMPANY Estimated Balance Sheet December 31, 2015 Liabilities and Equity Assets Cash Accounts receivable S35,500 Accounts payable S355,000 16,000 520,000 Bank loan payable 100.000 Taxes payable (due 655,500 Total liabilities 92,000 Inventory Total current assets Equipment Less accumulated depreciation 3/15/2016) $463,000 471,000 S541,000 67,625 Common stock 473,375 Retained earnings 194,875 Total stockholders' equity $1,128,875 Total liabilities and equity 665,875 $1,128,87:5 Total assets To prepare a master budget for January, February, and March of 2016, management gathers the following information