You have been engaged as a consultant to design a master budget model and then to assist Helping Hand Corp. in making some management decisions based on that master budget. Helping Hand is a small, rapidly growing wholesaler of consumer electronic products. The company's main product lines are small kitchen appliances and power tools. The marketing manager has recently completed a sales forecast. She believes the company's sales will increase by 1 percent each month over the previous month's sales from December 2015 through March 2016. Then sales are expected to remain constant for several months. Helping Hand's projec is as follows: ted balance sheet as of December 31, 2015 Cash Accounts receivable Marketable securities Inventory Buildings and equipment (net of accumulated depreciation) Total assets 60,000 172,530 10,000 39,784 000,000 882,314 Accounts payable Sales commissions payable Bond interest payable Property taxes payable Bonds payable (4%; due in 2020) Common stock Retained earnings Total liabilities and stockholders' equity $111,940 4,040 8,000 0 600,000 100,000 58,334 882,314 The following information has been accumulated to assist with preparing the master budget for the first quarter of 2016: Projected sales for November 2015 are $200,000. Credit sales are typically 90% of total sales. Helping Hand's credit experience indicates that 13% of credit sales are collected during the month of sale, 75% in the month following the sale, and 10% in the second month following the sale. Experience shows the remaining credit sales are uncollectible Helping Hand's cost of goods sold generally runs at 65% of sales. Inventory is purchased on account and 15% of each month's purchases are paid during the month of purchase. The remainder is paid during the following month. In order to have adequate stocks of inventory on hand, the company attempts to have inventory on hand at the end of each month equal to 30% of the next month's projected cost of goods sold The controller has estimated that Helping Hand's other monthly expenses will be as follows: 1) 2) 3) Sales salaries Advertising and promotion Administrative salaries Depreciation Interest on bonds Property taxes $35,000 5,000 12,000 7,500 2,000 1,000