All is 1 question with multiple parts.
f. New equipment purchases are budqeted as follows: Januafy. $33,600. Februafy. $96,000; and March, $21.600. Rudgeted depreciation expense is January, $6,725; February. \$7,725; and March, $7,950. g. The company budgets a land purchase at the end of March at a cost of $170.000, which will be paid with cash on the las day of the month. h. The company has an agreement with its bank to obtain additional loans as needed. The interest rate is 15 per month and interest is paid at each month-end based on the beginning-month balance. Partial or full payments on these loans are made on the last day of the month. The company maintains a minimum ending cash balance of $22.000 at the end of each month. i. The income tax rate for the company is 4%, Income taxes on the first quarer's income will not be paid until April 15 Required: Prepare a master budget for the months of January. February, and March that has the following budgets: 1. Sales budget. 2. Merchandise purchases budgets. 3. Selling expense budgets. 4. General and administrative expense budgets. Hint: Depreciation is induded in the general and administrative budget for merchandisers. 5. Capital expenditures budgets. 6. Cash budgets. 7. Budgeted income statement for entire quarter (not monthly) ended March 31. 8. Budgeted balance sheet as of March 31 . Complete this question by entering your answers in the tabs below. Sales budgets. Complete this question by entering your answers in the tabs below. Sales budgets. Complete this question by entering your answers in the tabs below. Merchandise purchoses budgets. Complete this question by entering your answers in the tabs below. Selling expense budgets. Complete this question by entering your answers in the tabs below. General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. Complete this question by entering your answers in the tabs below. Capital expenditures budgets. Complete this question by entering your answers in the tabs below. Cash budgets. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final arisaer to the nearest whole dollar. Budgeted income statement for the entire first quarter (not for each month). Note; Round your final answers to the nearest whole dollar: Budgeted balance sheet as of March 31 . Note: Round your final answers to the nearest whole dollar. Dimsdale Sports, a merchandising company, reports the tollowing balance sheet at December it To prepate a master budget for January. Fobruary, and March, use the following intormation. a. The company's single product is purchased for $20 per unit and resold for $59 per unit. The inventory level of 5,500 units on December 31 is more than management's desired level, which is 209 of the next month's budgeted sales units. Budgeted sales are January, 6,750 units, February, 8,500 units, March, 11,000 units, and April, 10.500 units, All sales are on credit. b. Cash recelpts from sales are budgeted as follows: January, \$269,388; February, \$78.254: March, \$525,608. c. Cash payments for merchandise purchases are budgeted as follows. January, $60,000 : February, $331,800; March, $83,200, d. Sales commissions equal to 20% of sales dollars are pald each month. Sales salaries (excluding commissions) are $8,000 per month. e. General and administrative salaries are $11,000 per month. Maintenance expense equals $2,200 per month and is paid in cish. f. New equipment purchases are budgeted as follows: January. $33,600; February. $96,000, and March. $21,600, Hudgeted depreciation expense is January. $6,725; February. $7,725; and March, $7,950
