Shamrock State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the information below for the months of January, February, and March. Balances at January 1 are expected to be as follows: Cash $6,820 Inventories $383,700 Accounts receivable 516,000 Accounts payable 165,000 The budget is to be based on the following assumptions: 1. 2. Each month's sales are billed on the last day of the month Customers are allowed a 3% discount if their payment is made within 10 days after the billing date. Receivables are booked at gross. The company collects 60% of the billings within the discount period, 25% by theremainder in the following month. Each month's units of ending inventory are equal to 130% of the next month's units of sales.

The cost of each unit of inventory is $20.

Selling, general, and administrative expenses, of which $2,500 is for depreciation, are equal to 15% of the current month's

sales.

Actual and projected sales are as follows:

6.

7.

Month

Sales

Units November

$438,000

14,600

December

450,000

15,000 January 444000

14,800

February

423,000

14,100

March

447,000

14,900

April

453,000

15,100