Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31. DIMSDALE SPORTS COMPANY Balance Sheet Cash Assets Accounts receivable Inventory December 31 Equipment Less: Accumulated depreciation Total assets $ 20,000 520,000 $ 636,000 79,500 95,000 556,500 $ 1,191,500 Liabilities and Equit Liabilities Accounts payable Loan payable Taxes payable (due March 15) $ 365,000 12,000 88,000 465,000 Equity Common stock Retained earnings $ 474,000 252,500 Total liabilities and equity 726,500 $ 1,191,500 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 $56 per unit. The inventory level of 4750 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, 7,250 units; February, 8,500 units; March, 11,250 units; and April, 10,000 units. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $241,800; February, $710,478; March, $502,110. c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $316,800; March, $103,400. 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 $13,000 per month. Maintenance expense equals $1,800 per month and is paid in cash. f. New equipment purchases are budgeted as follows: January, $36,000; February, $103,200; and March, $26,400. Budgeted