Please help! I need to create a budgeted balance sheet (Step 8) and cannot get it to balance. I have completed Steps 1-7 already. Thank you!

Solve the given problem based on the following scenario. The managers of Crouch Corp. need you to create the master budget for the months of January, February, and March of 2018. 32,400 472,500 135,000 639,900 Crouch Corp. Estimated Balance Sheet (as of December 31, 2017) Assets ($) Cash Accounts receivable Inventory Total current assets Equipment 486,000 Less accumulated depreciation (60,750 Net equipment Total assets Liabilities and Equity ($) Accounts payable Bank loan payable Taxes payable (due 3/15/2018) Total liabilities Common stock 425,250 Retained earnings 221,400 Total stockholders' equity Total liabilities and equity 425,250 1,065, 150 324,000 13,500 81,000 418,500 646,650 1,065,150 Use the following data to prepare the master budget. A single product of Crouch Corp. can be purchased for $25 per unit and resold for $50 per unit. The anticipated inventory level on December 31, 2017, is 2,500 units. This is actually more than its desired level for 2018, which is 20% of January's projected sales (in units). Projected sales are: 5,250 units for January 6,750 units for February 8,250 units for March 7,500 units for April The total sales consists of 25% cash sales and 75% credit sales. 60% of credit sales is collected in the first month after the sale, and 40% is collected in the second month after the sale. $112,500 of the accounts receivable balance for December 31, 2017, is collected in January and $360,000 is collected in February. 20% of the payment for merchandise purchases is made one month after the purchase, and 80% is made in the second month. $72,000 of the balance of accounts payable for December 31, 2017, is paid in January, and $252,000 is paid in February. Salaries for salespersons average $45,000 per year. In addition to this, a sales commission equal to 20% of each salesperson's sales is paid on a monthly basis. Salaries for general administrative staff average $108,000 per year. Each month, $1,500 is paid for maintainance expenses. The December 2017 balance sheet reflects an equipment purchase in January 2017. Using the straight-line method, depreciation will occur over 8 years, with no salvage value. A full month's depreciation is recognized in the month in which the asset is purchased. The following new equipment purchases are projected for the next quarter: $27,000 in January $72,000 in February $21,600 in March The company has negotiated to purchase land for $112,500, which will be paid on the last day of March, in cash. Crouch Corp. has arranged an agreement with its bank to take additional loans as needed. The bank charges 12% interest per year. Crouch Corp. pays interest on the monthly beginning balance at the end of each month. The company may make full or partial loan payments on the last day of the month. According to this agreement with the bank, the minimum ending cash balance each month must be $18,750. The first quarter's income tax is paid on April 15 at a tax rate of 35%. Using the data provided, prepare the master budget for the first quarter of 2018, including all the following budgets: 1. Monthly sales budgets (showing both budgeted unit sales and dollar sales) 2. Monthly merchandise purchases budgets 3. Monthly selling expense budgets 4. Monthly general and administrative expense budgets 5. Monthly capital expenditures budgets 6. Monthly cash budgets 7. Budgeted income statement for the entire first quarter (not for each month) 8. Budgeted balance sheet as of March 31, 2018 Crouch Corp. Sales Budgets January, February, and March 2018 Budgeted Units Budgeted Unit Price 5,250 $50 6,750 $50 8,250 $50 20,250 January February March Total for Q1 Budgeted Total Dollars $ 262,500 $ 337,500 $ 412,500 1,012,500 Next Month's Budgeted Sales (Units) Ratio of Inventory to future sales Budgeted Ending Inventory Add: Budgeted Sales (Units) Required units of available merchandise Deduct: Beginning inventory (units) Units to be produced Budgeted Cost per unit Budgeted cost of merchandise purchases Crouch Corp. Merchandise Purchases Budgets January, February, and March 2018 January February 6,750 8,250 20% 20% 1,350 1,650 5,250 6,750 6,600 8,400 2,500 1.350 4,100 7,050 $25 $25 $ 102,500 $ 176,250 March 7,500 20% 1,500 8,250 9,750 1,650 8,100 $25 202,500 Total 22,500 20% 4,500 20,250 24,750 5,500 19,250 $25 $ 481,250 $ Crouch Corp. Selling Expenses Budget January, February, and March 2018 January February 262,500 337,500 20% 20% 52,500 67,500 3,750 3,750 56,250 71,250 Total 1,012,500 Budgeted Sales Sales Commissions (%) Sales Commissions ($) Salary Expenses Total Selling Expenses March 412,500 20% 82,500 3,750 86,250 202,500 11,250 213,750 Crouch Corp. General and Administrative Expenses Budget January, February, and March 2018 January February $ 9,000 $ 9,000 1,500 1,500 5,344 6,094 $ 15,844 $ 16,594 $ March 9,000 1,500 6,319 16,819 Administrative Salaries Maintenance Expenses Depreciation Budgeted Expenses Total 27,000 4,500 17,757 49,257 A A $ A $ Total * Depreciation expense calculations Annual Depreciation Expense Jan-17 60750 Jan-18 3,375 Feb-18 9,000 Mar-18 2,700 Total 75,825 January 5063 281 February 5063 281 750 March 5063 281 750 15189 843 1,500 225 17,757 225 6,319 5,344 6,094 Crouch Corp. Capital Expenditures Budget January, February, and March 2018 January February $ 27,000 $ 72,000 Equipment Land Total March $ 21,600 112,500 $ 134,100 $ 27,000 $ 72,000 February 31,140 84,375 118,125 March 167,390 103,125 151,875 78,750 360,000 593,640 20,500 Crouch Corp. Cash Budgets January, February, and March 2018 January Beginning Balance $ 32,400 $ Cash Sales 65,625 60% Collect of Sales on Credit 40% Collect of Sales on Credit AR Collected 112,500 Total Cash Inflow 210,525 Payment for Purchases (20%) Payment for Purchases (80%) AP Payments 72,000 Selling Expenses 56,250 G&A Expenses (Excluding Depreciation) 10,500 Capital Expenditures 27,000 Income Tax Total Cash Outflow 165,750 Excess of Cash Inflow over Cash Outflow 44,775 Loan Repayment 13,500 Interest on Loan $ 135 Total Financing $ 13,635 Ending Balance 31,140 501,140 35,250 82,000 252,000 71,250 10,500 72,000 86,250 10,500 134,100 81,000 429,100 72,040 426,250 167,390 0 $ 0 167,390 72,040 January February March Total Supporting calculations Note A: Cash receipts from customers $ $ Sales Cash Sales (25%) Accounts Receivable Balance (75%) $ 262,500 65,625 196,875 337,500 84,375 253,125 412,500 103,125 309,375 $ 1,012,500 253,125 759,375 103,125 65,625 112,500 Current Month Cash Sales Collections of December 2017 receivables Collections of January 2018 receivables Collections of February 2018 receivables 84,375 360,000 118,125 78,750 151,875 472,500 196,875 151,875 Total Cash Collection 178,125 562,500 333,750 1,074,375 $ 102,500 $ 176,250 $ 202,500 Note B: Cash payments for merchandise Merchandise Purchases Cash Payments for December 2017 Purchases January 2018 Purchases February 2018 Purchases Total 72,000 252,000 20,500 82,000 35,250 $ 117,250 $ 72,000 $ 272,500 $ 461,750 Crouch Corp. Budgeted Income Statement For Three Months Ended March 2018 Sales 1,012,500 COGS 506,250 Gross Profit 506,250 Operating Expenses Selling Expenses 213,750 Administrative Expenses 31,500 Depreciation 17,757 Interest Expense 135 263,142 Income Before Tax 243, 108 Income Tax 85,088 Net Income 158,020