Problem $8-31($Algo$)$ Completing a Master Budget $[$LO$8-2,$ LO$8-4,$ LO$8-7,$ LO$8-8,$ LO$8-9,$ LO$8-10]$

Hillyard Company, an office supplies specialty store, gathered the following information to prepare its master budget for the first quarter of the year:

a$.$ As of December $31($the end of the prior quarter$),$ the company's general ledger showed the following account balances:

$\backslash$table$[[,$Debits,Credits$],[$Cash$,$$ $60,000,],[$Accounts receivable,$216,000,],[$Inventory$,60,750,],[$Buildings and equipment $($net$),370,000,],[$Accounts payable,,$ $91,125],[$Common stock,,$500,000115,625],[$Retained earnings,$ $706,750,$$ $706,750]]$

b$.$ Actual sales for December and budgeted sales for the next four months are as follows:

$\backslash$table$[[$December$($actual$),$$$270,000$