Complete the Model-Building Case..

C3 THREE-MONTH MASTER BUDGET The balance sheet of Thorny Corp. as of December 31 is as follows: Thorny Corp. Balance Sheet at December 31 Assets Cash Accounts receivable Raw materials Finished goods Land Plant and equipment $ 41,700 192,000 102,240 64,400 50,000 $ 500,000 112,000 388,000 $838,340 Liabilities and Stockholders' Equity Accounts payable to suppliers Common stock Retained earnings $ 40,000 100,000 698340 798.340 The following information has been extracted from Thorny's records: 1. Thorny manufactures and sells Gizmos. The company has projected unit sales for its product for the next five months as follows: January February March April May Units 7,000 8,000 10,000 8,000 7,000 All sales are made on account. Gizmos sell for $60 each. Forty percent of all sales are collected in the month of sale. The remaining 60% are collected in the following month. 2. Management desires to maintain the finished goods inventory for Gizmos at 20% of the following month's sales. Thorny's December 31 finished goods inventory consists of 1,400 Gizmos. 3. In order to produce one Gizmo, the following units of raw materials are used: Units Raw Material What Huh The price of What has recently risen and is now $4 per unit. The price of Huh is $2.80 per ry for both What and unit. Management desires to maintain the ending raw materials invento Huh at 25% of the following month's production needs. Thorny's December 31 raw material