Shamrock State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the information below for the months of January, February and March

Balances at January 1 are expected to be as follows:

Cash

$383,700

Accounts receivable

$6,820 Inventories

$16.000

Accounts payable

165.000

The budget is to be based on the following assumptions

1 Each month's sales are billed on the last day at the month

2. Customers are allowed a 2% discount if their payment is made within 10 stays after the billing state. Recentiles are fooled at

The company collects 60% of the billing within the discount period 25% by the end of the month after the date of sale, and

9% by the end of the second month after the date if sale 6% prove uncollectible

The company collects 60% of the billings within the discount period. 25% by the end of the month after the date of sale, and 9%% by the end of the second month after the date of sale: 63% prove uncollectible.

It pays 54% of all materials purchases and the selling, general, and administrative experises in the month purchased and the remainder in the following month. Each month's units of ending inventory are equal to 130% of the next month's units of

sales.

5. The cost of each unit of inventory is $20.

Selling, general, and administrative expenses, of which $2.500 is for depreciation, are equal to 15% of the current month's

sales.

7. Actual and projected sales are as follows:

Month

Sales

Units

November

$438,000

14,600

December

January

15,000

444,000 14,800

450,000

February

423,000

14,100

March

April

447,000

453,000

14,900

15.100