Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31 . 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 5,250 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, 8,750 units; March, 11,000 units, and Apeil, 11,000 units, All sales are on credit b. Cash receipts from sales are budgeted as follows: Januacy, \$262,025; February, \$722,765; March, \$522,261 c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $318,000; March, $88,800 d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $7,000 per month e. Generat and adminisuative salaries are $13,000 per month. Maintenance expense equas $1,900 per month and is paid in cash. L. New equipment purchases are budgeted as follows: January, $36,000; February, $96,000; and March, $24,000 Budgeted depreciation expense is January, $6,500, February, \$7,500; and March, $7750 9. The compony budgets a land purchase ot the end of March at a cost of $145,000, which will be paid with cash on the last doy of the month. h. The company has an agreement with its bank to obtain adorional loans as needed. The interest rate is 18 per month and interest is pald at each month-end based on the beginning month balance. Partiol or full payments on these ioans are made on the last doy of the month. The company maintains a minimum enting cash balonce of $21,000 at the end of each month 1. The income tak rate for the compary is 4 W Income taves on the first quarter's income will not be paid unti April 15 Required: Prepare a master budget sor the montess of January, Februay, and March that has the following budgets 1. Soles buctoeth 2. Merchandte purchases bodgets 3. Seling expeme bodoets 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 Sales budgets. Merchandise purchases budgets. Selling expense budgets. General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. Capital expenditures budgets. Cash budgets. (Negative balances and Loan repayment amounts (if any). should be indicated with minus sign. Round final answers to the nearest whole dollar.) DIMSDALE SPORTS COMPANY Budgeted Balance Sheet 50 points shipoed eBook Print Deterences Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31 . 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 5,250 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, 8,750 units; March, 11,000 units, and Apeil, 11,000 units, All sales are on credit b. Cash receipts from sales are budgeted as follows: Januacy, \$262,025; February, \$722,765; March, \$522,261 c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $318,000; March, $88,800 d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $7,000 per month e. Generat and adminisuative salaries are $13,000 per month. Maintenance expense equas $1,900 per month and is paid in cash. L. New equipment purchases are budgeted as follows: January, $36,000; February, $96,000; and March, $24,000 Budgeted depreciation expense is January, $6,500, February, \$7,500; and March, $7750 9. The compony budgets a land purchase ot the end of March at a cost of $145,000, which will be paid with cash on the last doy of the month. h. The company has an agreement with its bank to obtain adorional loans as needed. The interest rate is 18 per month and interest is pald at each month-end based on the beginning month balance. Partiol or full payments on these ioans are made on the last doy of the month. The company maintains a minimum enting cash balonce of $21,000 at the end of each month 1. The income tak rate for the compary is 4 W Income taves on the first quarter's income will not be paid unti April 15 Required: Prepare a master budget sor the montess of January, Februay, and March that has the following budgets 1. Soles buctoeth 2. Merchandte purchases bodgets 3. Seling expeme bodoets 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 Sales budgets. Merchandise purchases budgets. Selling expense budgets. General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. Capital expenditures budgets. Cash budgets. (Negative balances and Loan repayment amounts (if any). should be indicated with minus sign. Round final answers to the nearest whole dollar.) DIMSDALE SPORTS COMPANY Budgeted Balance Sheet 50 points shipoed eBook Print Deterences