I have to do a flexible budget based on a master budget but I do not know how to do that based on this master budget. How do I make a flexible budget based on a master budget?

	Solve the given problem based on the following scenario.
	The managers of Crouch Corp. need you to create the master budget for the months of January, February, and March of 2018.
	Crouch Corp. Estimated Balance Sheet (as of December 31, 2017)
	Assets ($)
	Cash													32,400
	Accounts receivable												472,500
	Inventory												135,000
	Total current assets												639,900
	Equipment									486,000
	Less accumulated depreciation								(60,750)
	Net equipment												425,250
								Total assets					1,065,150
	Liabilities and Equity ($)
	Accounts payable												324,000
	Bank loan payable												13,500
	Taxes payable (due 3/15/2018)											81,000
	Total liabilities												418,500
	Common stock									425,250
	Retained earnings									221,400
	Total stockholders' equity											646,650
					Total liabilities and equity						1,065,150
	Use the following data to prepare the master budget.
		A single product of Crouch Corp. can be purchased for $25 per unit and resold for $50 per unit.
		The anticipated inventory level on December 31, 2017, is 2,500 units.
		This is actually more than its desired level for 2018, which is 20% of January's
		projected sales (in units). Projected sales are:
			5,250 units for January
			6,750 units for February
			8,250 units for March
			7,500 units for April
		The total sales consists of 25% cash sales and 75% credit sales.
		60% of credit sales is collected in the first month after the sale, and 40% is collected
		in the second month after the sale.
		$112,500 of the accounts receivable balance for December 31, 2017, is collected in
		January and $360,000 is collected in February.
		20% of the payment for merchandise purchases is made one month after the
		purchase, and 80% is made in the second month.
		$72,000 of the balance of accounts payable for December 31, 2017, is paid in
		January, and $252,000 is paid in February.
		Salaries for salespersons average $45,000 per year. In addition to this, a sales
		commission equal to 20% of each salesperson's sales is paid on a monthly basis.
		Salaries for general administrative staff average $108,000 per year.
		Each month, $1,500 is paid for maintainance expenses.
		The December 2017 balance sheet reflects an equipment purchase in January 2017.
		Using the straight-line method, depreciation will occur over 8 years, with no
		salvage value. A full month's depreciation is recognized in the month in which the
		asset is purchased.
		The following new equipment purchases are projected for the next quarter:
			$27,000 in January
			$72,000 in February
			$21,600 in March
		The company has negotiated to purchase land for $112,500, which will be paid on
		the last day of March, in cash.
		Crouch Corp. has arranged an agreement with its bank to take additional loans
		as needed. The bank charges 12% interest per year. Crouch Corp. pays interest on the
		monthly beginning balance at the end of each month. The company may make
		full or partial loan payments on the last day of the month. According to this
		agreement with the bank, the minimum ending cash balance each month must
		be $18,750.
		The first quarter's income tax is paid on April 15 at a tax rate of 35%.
	Using the data provided, prepare the master budget for the first quarter of 2018,
	including all the following budgets:
	1.	Monthly sales budgets (showing both budgeted unit sales and dollar sales)
	2.	Monthly merchandise purchases budgets
	3.	Monthly selling expense budgets
	4.	Monthly general and administrative expense budgets
	5.	Monthly capital expenditures budgets
	6.	Monthly cash budgets
	7.	Budgeted income statement for the entire first quarter (not for each month)
	8.	Budgeted balance sheet as of March 31, 2018
	Note: Round numbers to the nearest dollar and use supporting calculations.
	Crouch Corp.
	Sales Budgets
	January, February, and March 2018
			Budgeted Units		Budgeted Unit Price			Budgeted Total Dollars
	Jan.		5,250		$50			$262,500
	Feb.	6,750		$50			$337,500
	Mar.	8,250		$50			$412,500
	Total							$1,012,500
	Crouch Corp.
	Merchandise Purchases Budgets
	January, February, and March 2018
					January			February			March			Total
	Next Months budgeted units		6,750			8,250			7,500			22,500
	Ratio of inventory to future sales		20%			20%			20%			20%
	Ending inventory			1,350			1,650			1,500			4,500
	Add: budgeted sales			5,250			6,750			8,250			20,250
	Required units of mechandise available		6,600			8,400			9,750			24,750
	Less: beginning inventory		2,500			1,350			1,650			5,500
	Units to be purchased			4,100			7,050			8,100			19,250
	Cost per unit			$25			$25			$25			$25
	Cost of merchandise purchase		$102,500			$176,250			$202,500			$481,250
	Crouch Corp.
	Selling Expenses Budget
	January, February, and March 2018
					January			February			March			Total
	Budget sales			262,500			337,500			412,500			1,012,500
	Sales commission %			20%			20%			20%			20%
	Sales commission			52,500			67,500			82,500			202,500
	Salary for sales manager		3,750			3,750			3,750			11,250
	Total selling expenses			$56,250			$71,250			$86,250			$213,750
	Crouch Corp.
	General and Administrative Expenses Budget
	January, February, and March 2018
					January			February			March			Total
	Administrative salaries			$ 9,000			$ 9,000			$ 9,000			$ 27,000
	Total general and administrative exepenses	$ 9,000			$ 9,000			$ 9,000			$ 9,000
	* Depreciation expense calculations
			Annual Depreciation Expense		January			February			March			Total
	Equiptment owned	60,750		5,036			5,036			5,036			75,939
	Jan. purchases	$ 3,375		$ 281			$ 281			$ 281			$ 4,218
	Feb. purchases	9,000					750			750			$10,500
	Mar. purchases	2,700								225			$2,925
	Total depreciation expenses	$75,825		$5,344			$6,094			$6,319			$93,582
	Crouch Corp.
	Capital Expenditures Budget
	January, February, and March 2018
				January	February	March
	Purchases of equiptment		$27,000			$72,000			$21,600
	Purchase of land									$112,500
	Total capital expenditures		$27,000			$72,000			$134,100
	Crouch Corp.
	Cash Budgets
	January, February, and March 2018
					January	February	March
	Beginning cash balance			$ 32,400			$ 43,140			$ 179,390
	Add: Cash receipts from sales		178,125			562,500			333,750
	Total cash available			210,525			605,640			513,140
	Less: Cash payments for
		Merchandise payments		60,000			272,500			117,250
		Sales commissions		52,500			67,500			82,500
		Sales salaries			3,750			3,750			3,750
		Administrative salaries		9,000			9,000			9,000
		Maintenance			1,500			1,500			1,500
		Interest on loan		135
		Income taxes									81,000
		Purchase of equiptment		27,000			72,000			21,600
		Purchase of land								112,500
	Total cash payments			153,885			426,250			429,100
	Cash balance			56,640			179,390			84,040
	Loan payment			13,500
	Ending cash balance			$43,140			$179,390			$84,040
	Supporting calculations	January	February	March	Total
	Note A: Cash receipts from customers
	Sales				$ 262,500			$ 337,500			$ 412,500			$1,012,500
	Cash receipts from
		Cash sales 25%		65,625			84,375			103,125			$253,125
	Accounts receivable			112,500			360,000
		Credit sales after 1st month 60%				118,125			151,875			270,000
		Credit sales after 2nd month 40%							78,500			78,750
	Total Cash received			$178,125			$562,500			$333,500			$1,074,125
	Note B: Cash payments for merchandise
	Credit purchases			$ 102,500			$ 176,250			$ 202,500			$481,250
	Accounts payable			$ 72,000			$ 252,000						$324,000
		1st month after 20%					20,500			35,250			$55,750
		2nd month after 80%								82,000			$82,000
	Total paid on merchandise purchases	$60,000			$ 272,500			$ 117,250			$ 449,750
	Crouch Corp.
	Budgeted Income Statement
	For Three Months Ended March 2018
	Sales							$1,012,500
	Cost of goods sold						506,250
	Gross profit						$506,250
	Selling, general, and admin. Expenses
		Sales commissions		$ 202,500
		Sales salaries			11,250
		Admin salaries			27,000
		Maintenance expense		4,500
		Depreciation			15,075
		Interest expense		188			260,513
	Income before taxes						245,737
	Income tax expense						86,008
	Net income						$159,729
	Crouch Corp.
	Budgeted Balance Sheet
	March 31, 2018
	Assets
	Cash							$ 84,040
	Accounts recievable						401,250
	Inventory						37,500
	Total current assets						$522,790
	Equiptment			425,250
	Less:accumulated depreciation		$ 71,497			15,075
	New equiptment			120,600
	Land				112,500
	Total assets						$1,252,637
	Liabilities and Equity
	Accounts payable						$ 360,250
	Income taxes payable						$ 86,008
	Bank loan payable						$13,500
	Total liabilities						446,258
	Common stock						425,250
	Retained earnings						381,129
	Total liabilities and equity					$1,252,637