To prepare a master budget for January, February, and March, use the following Information. a. The company's single product is purchased for $20 per unit and resold for $56 per unit. The Inventory level of 5,500 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, 6,750 units; February, 9,250 units; March, 11,250 units; and April, 10,500 units. All sales are on credit. b. Cash recelpts from sales are budgeted as follows: January, $262,300; February, $721,177; March, $521,710. c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $312,400; March, $88,200. d. Sales commIssions equal to 20% of sales dollars are paid each month. Sales salarles (excluding commissions) are $7,500 per month. e. General and administrative salarles are $13,000 per month. MaIntenance expense equals $2,100 per month and is pald In cash. f. New equipment purchases are budgeted as follows: January, $36,000; February, $96,000; and March, $21,600. Budgeted depreclation expense is January, $6,000; February, $7,000; and March, $7,225. g. The company budgets a land purchase at the end of March at a cost of $170,000, 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. Partlal or full payments on these loans are made on the last day of the month. The company maintains a minimum ending cash balance of $21,500 at the end of each month. I. The Income tax rate for the company Is 39%. Income taxes on the first quarter's Income will not be pald until April 15. Required: Prepare a master budget for the months of January, February, and March that has the following budgets: 1. Sales budget. 2. Merchandise purchases budgets. 3. Selling expense budgets. 4. General and administrative expense budgets. Hint: Depreclation is included in the general and administrative budget for merchandisers. 5. Capltal expenditures budgets. 6. Cash budgets. 7. Budgeted Income statement for entire quarter (not monthly) ended March 31