ces DIMSDALE SPORTS COMPANY Balance Sheet December 31 Assets Cash Accounts receivable Inventory Equipment Less: Accumulated depreciation Total assets Liabilities Liabilities and Equity Accounts payable Loan payable Taxes payable (due March 15) Equity $ 552,000 69,000 $360,000 12,000 90,000 $ 21,000 520,000 95,000 $ 471,000 186,000 483,000 $ 1,119,000 462,000 Common stock Retained earnings Total liabilities and equity To prepare a master budget for January, February, and March, use the following information. 657,000 $ 1,119,000 a. The company's single product is purchased for $20 per unit and resold for $58 per unit. The inventory level of 4,750 units on December 31 is more than management's desired level, which is 20% of the next month's budgeted sales units. Budgeted sales are January, 6,750 units; February, 9,500 units; March, 10,750 units; and April, 10,000 units. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $242,450; February, $721,990; March, $526,974. c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $310,600; March, $101,400. d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $5,000 per month. e. General and administrative salaries are $13,000 per month. Maintenance expense equals $2,100 per month and is paid in cash.

To prepare a master budget for January, February, and March, use the following information. a. The company's single product is purchased for $20 per unit and resold for $58 per unit. The inventory level of 4,750 units on December 31 is more than management's desired level, which is 20% of the next plonth's budgeted sales units. Budgeted sales are January, 6,750 units; February, 9,500 units; March, 10.750 units; and April, 10,000 dnits. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $242,450;; February, $721,990;; March, $526,974. c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $310,600;;arch, $101,400. d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $5,000 per month. e. General and administrative salaries are $13,000 per month. Maintenance expense equals $2,100 per month and is paid in cash