c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $327,900; March, $170,700. d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $4,500 per month. e. General and administrative salaries are $12,000 per month. Maintenance expense equals $2,100 per month and is paid in cash. f. New equipment purchases are budgeted as follows: January, $38,400; February, $93,600; and March, $19,200. Budgeted depreciation expense Is January, $ 7,025; February, $8,000; and March, $8,200. g. The company budgets a land purchase at the end of March at a cost of $140,000, which will be paid with cash on the last day of the month. h. The company has an agreement with Its bank to obtain additional loans as needed. The interest rate is 1% 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 $21,500 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 the months of January, February, and March that has the following budgets: 1. Sales budgets. 2. Merchandise purchases budgets. 3. Selling expense budgets. 4. General and administrative expense budgets. Hint: Depreciation is included 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. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required B Sales budgets. DIMSDALE SPORTS Sales Budget January Budgeted sales units February March Totals Prey 1 of 5 Next >