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To prepare a master budget for January. February, and March, use the following information. a. The company's single product is purchased for $30 per unit

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To prepare a master budget for January. February, and March, use the following information. a. The company's single product is purchased for $30 per unit and resold for $58 per unit. The inventory level of 5,250 units on December 31 is more than management's desired level, which is 20% of the next month's budgeted sales units, Budgeted sales are January, 7,500 units; February, 8,500 units; March, 10,500 units; and April, 9,000 units. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $282,250; February, $746,338; March, $520,406. c. Cash payments for merchandise purchases are budgeted as follows: January. $60,000; February, $323,700; March, $148,200. d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $6,500 per month. e. General and administrative salaries are $11,000 per month. Maintenance expense equals $2,100 per month and is paid in cash. f. New equipment purchases are budgeted as follows: January, $31,200; February, $93,600; and March, $24,000, Budgeted depreciation expense is January, $5,825; February, $6,800; and March, $7,050. 9. The company budgets a land purchase at the end of March at a cost of $160,000, which will be paid with cash on the last day of the month. h. The company has an agreement with its bank to obtain additional loans as needed. The interest rate is 1% per month and interest is paid at each month-end based on the beginning-month balance. Partial or full payments on these loans are made on the last day of the month. The company maintains a minimum ending cash balance of $22,000 at the end of each month. 1. The income tax rate for the company is 35\%. Income taxes on the first quarter's income will not be paid until April 15. Budgeted Income statement for the entire first quarter (not for each month). (Round your final answers to dollar.) Budgeted balance sheet as of March 31. (Round your final answers to the nearest whole dollar.) Required 3>

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