2 Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019, DINSDALE SPORTS COMPANY Eatinated Balance Sheet ints December 31, 2019 Assets Cash $ 37,000 Accounts receivable 520,000 Inventory 157,500 Total current assets $714,500 eBook Equipment 564,000 Print Total assets Accounts payable, Bank loan payable Taxes payable (due 3/15/2020) Total liabilities Common stock Less Accumulated depreciation Equipment, net Liabilities and Equity 10,500 493,500 $1,200,000 $380,000 12,000 $2,000 5404,000 Retained earnings Total stockholders' equity Total liabilities and equity 473,500 250,500 724,000 $1,200,000 To prepare a master budget for January, February, and March of 2020, management gathers the following information, a. The company's single product is purchased for $30 per unit and resold for $59 per unit. The expected inventory level of 5,250 units on December 31, 2019, is more than management's desired level, which is 20% of the next month's Expected sales (in units) Expected sales are January, 7,500 units; February, 8,750 units; March, 10,750 units; and April, 10,500 units. b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 63% is collected in the first month after the month of sale and 37% in the second month after the month of sale. For the December 31, 2019, accounts receivable balance, $125,000 is collected in January 2020 and the remaining $395,000 is collected in February 2020 c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2019, accounts payable balance, $70,000 is paid in January 2020 and the remaining $310,000 is paid in February 2020 Check m