6 Saved Help Save & Exit Submit Check my work 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 $20 per unit and resold for $55 per unit. The expected inventory level of 5,500 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 7,000 units; February, 8,500 units; March 11,250 units; and April, 10,500 units b. Cash sales and credit sales represent 20% and 80%, respectively, of total sales. Of the credit sales, 59% is collected in the first month after the month of sale and 41% in the second month after the month of sale. For the December 31, 2019, accounts receivable balance $120,000 is collected in January 2020 and the remaining $400,000 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, $65,000 is paid in January 2020 and the remaining $285,000 is paid in February 2020. d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $60,000 per year. e. General and administrative salaries are $144,000 per year. Maintenance expense equals $2,000 per month and is paid in cash f. Equipment reported in the December 31, 2019, balance sheet was purchased in January 2019. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $31,2007 February, $100,800; and March, $19,200. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month's depreciation is taken for the month in which equipment is purchased. g. The company plans to buy land at the end of March at a cost of $170,000, which will be paid with cash on the last day of the month The man ha uning arrannomont waith ite hand in hrain artinnallaane sensorial The internet rate le 17 Trace CLEAR Watson Blue Team BWC My Drive Oracle timeclock rk 6 6 Saved Help Save & Exit Submit Check my work h. The company has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $23,000 at the end of each month. 1. The income tax rate for the company is 41%. Income taxes on the first quarter's income will not be paid until April 15. Required: Prepare a master budget for each of the first three months of 2020; include the following component budgets. 1. Monthly sales budgets 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, 2020. ces Complete this question by entering your answers in the tabs below. Required 7 Required 6 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 6 Calc Cash Bud Rivetert halanne cheat senf March 21 non di final neure to the nesroet wla Hallar Required 1 Required 2 Required 3 Required 4 Required 5 Requir Cala Monthly sales budgets. DIMSDALE SPORTS CO. Sales Budget For January, February, and March 2020 Budgeted Unit Budgeted Budgeted Total Sales Unit Price Dollars January February March Totals for the quarter 2 Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Calc Required 6 Cash Bud Required 7 Required 8 Monthly general and administrative expense budgets. ints February March January $ 600,000 eBook Equipment - beginning of month Equipment purchases Equipment - end of month Print References DIMSDALE SPORTS CO. General and Administrative Expense Budget January, February, and March 2020 January February March Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 6 Calc Cash Bud Required 7 Required 8 Monthly capital expenditures budgets. DIMSDALE SPORTS COMPANY Capital Expenditures Budget January, February, and March 2020 January February aces March Total Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 6 Calc Cash Bud Required 7 Require Calculate the budgeted cash receipts and cash payments. (Negative values should be indicated with minus final answers to the nearest whole dollar.) Calculation of Cash receipts from customers: January February March Sales in units Selling price per unit Total budgeted sales Cash sales 20% Sales on credit 80% es Collected in March 31 Total Receivable March January $ 120,000 February $ 400,000 $ 520,000 $ 0 Accounts Receivable - January 1 Credit sales from: January February March Total collection of receivables 0 0 0 $ 400,000 $ $ 0 120,000 $ Total cash receipts from customers January February March Collections of receivables Calculation of payments for merchandise: January February March Monthly cash budgets. (Negative balances and Loan repayment amounts (if any) should be indica Your final answers to the nearest whole dollar.). DIMSDALE SPORTS CO. Cash Budget January, February, and March 2020 January February March Beginning cash balance Total cash available Cash payments for 5 0 0 Total cash payments Preliminary cash balance Ending cash balance Loan balance January February March Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month