Value City Home Furnishings Store, prepares its master budget on a quarterly basis. The December 31 balance sheet is as follows (These are the beginning balances for the year.) Actual sales for December and budgeted sales for the next four months are as follows: Sales arc 75% for cash and 25% on credit. All credit sales are collected in the month following the state. The accounts receivable at December 31 win be collected in January. The company's gross profit is 40% of sales. Monthly expenses are budgeted as follows: salaries and wages, $14,000 per month: advertising, $25,000 per month; shipping, 5% of sales; other expense, 15% of sales. Depreciation for the quarter will be $8,000. At the end of each month, inventory is to be on hand equal to 60% of the following month's sales needs, stated at cost. 30% of a month's inventory purchases are paid for in the month of purchase; the remainder is paid for in the following month. During February, the company will purchase land for $8,000 cash. During March, land will be purchased for cash at a cost of $2,000. During January, the company will declare and pay $30,000 in cash dividends. The company must maintain a minimum cash balance of $5,000. An open line of credit is available at a local bank for any borrowing that may be needed during the quarter. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month. Borrowing and repayment of principal must be in multiples of $1,000. Interest is paid only at the time of payment of principal. The annual interest rate is 18%. (Figure interest on whole months, e.g., 1/12, 2/12.)