Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31. DIMSDALE SPORTS COMPANY Balance Sheet Cash Assets December 31 $ 20,500 Accounts receivable Inventory Equipment Less: Accumulated depreciation $540,000 67,500 Total assets 520,000 95,000 472,500 $ 1,108,000 Liabilities and Equity Liabilities Accounts payable $ 345,000 13,000 89,000 447,000 Loan payable Taxes payable (due March 15) Equity Common stock Retained earnings Total liabilities and equity $474,000 187,000 661,000 $ 1,108,000 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 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, 9,000 units, March, 11,000 units; and April, 10.500 units. All sales are on credit b. Cash receipts from sales are budgeted as follows: January, $238,400 February, $697,022, March, $499,674 Prev Next