The managers of Crouch Corp. need you to create the master budget for the months of January, February, and March of 2018. Crouch Corp. Estimated Balance Sheet (as of December 31, 2017) Assets ($) Cash 32,400 Accounts receivable 472,500 Inventory 135,000 Total current assets 639,900 Equipment 486,000 Less accumulated depreciation (60,750) Net equipment 425,250 Total assets 1,065,150 Liabilities and Equity ($) Accounts payable 324,000 Bank loan payable 13,500 Taxes payable (due 3/15/2018) 81,000 Total liabilities 418,500 Common stock 425,250 Retained earnings 221,400 Total stockholders' equity 646,650 Total liabilities and equity 1,065,150Use 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 Note: Round numbers to the nearest dollar and use supporting calculations. Crouch Corp. Sales Budgets January, February, and March 2018 Budgeted Budgeted Budgeted Units Unit Price Total Dollars Crouch Corp. Merchandise Purchases Budgets January, February, and March 2018 January February March TotalCrouch Corp. Selling Expenses Budget January, February, and March 2018 January February March Total Crouch Corp. General and Administrative Expenses Budget January, February, and March 2018 January February March Total * Depreciation expense calculations Annual Depreciation Expense January February March TotalCrouch Corp. Capital Expenditures Budget January, February, and March 2018 January February March Crouch Corp. Cash Budgets January, February, and March 2018 January February March Supporting calculations January February March Total Note A: Cash receipts from customersSupporting calculations January February March Total Note A: Cash receipts from customers Note B: Cash payments for merchandise Crouch Corp. Budgeted Income Statement For Three Months Ended March 2018Crouch Corp. Budgeted Balance Sheet March 31, 2018