PR $9-34($Algo$)$ Relationships of the Master$-$Budget Components $($LO $9-3,9-5,9-6)$

Badlands Incorporated manufactures a household fan that sells for $$40$ per unit. All sales are on account, with $40$ percent of sales

collected in the month of sale and $60$ percent collected in the following month. The data that follow were extracted from the

company's accounting records.

Badlands maintains a minimum cash balance of $$60,000.$ Total payments in January $201$ are budgeted at $$462,500.$

A schedule of cash collections for January and February of $201$ revealed the following receipts for the period:

March $201$ sales are expected to total $10,240$ units.

Finished$-$goods inventories are maintained at $20$ percent of the following month's sales.

The December $31,200,$ balance sheet revealed the following selected figures: cash, $$75,000$; accounts receivable, $$252,000$;

and finished goods, $$68,700.$