Near the end of 2017, the management of Isle Corp., a merchandising company, prepared the following estimated balance sheet for December 31, 2017. ISLE CORPORATION Estimated Balance Sheet December 31, 2017 Assets Liabilities and Equity Cash $ 36,000 Accounts payable... $360,000 Accounts receivable 525,000 Bank loan payable 15,000 Inventory 150,000 Taxes payable (due 3/15/2018). 90,000 Total current assets $ 711,000 Total liabilities... $ 465,000 Equipment 540,000 Common stock 472,500 Less: Accumulated depreciation.. Equipment, net. 67,500 Retained earnings 246,000 Total assets 472,500 $1,183,500 Total stockholders' equity 718,500 Total liabilities and equity $1,183,500 To prepare a master budget for January, February, and March of 2018, management gathers the following information. a. The company's single product is purchased for $30 per unit and resold for $45 per unit. The expected inventory level of 5,000 units on December 31, 2017, is more than management's desired level for 2018, which is 25% of the next month's expected sales (in units). Expected sales are; January, 6,000 units; February, 8,000 units; March, 10,000 units; and April, 9,000 units. b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60% is collected in the first month after the month of sale and 40% in the second month after the month of sale. For the $525,000 accounts receivable balance at December 31, 2017, $315,000 is collected in January 2018 and the remaining $210,000 is collected in February 2018. c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the $360,000 accounts payable balance at December 31, 2017, $72,000 is paid in January 2018 and the remaining $288,000 is paid in February 2018. d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $90,000 per year. e. General and administrative salaries are $144,000 per year. Maintenance expense equals $3,000 per month and is paid in cash.