Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31. DIMSDALE SPORTS COMPANY Balance Sheet December 31 Cash Assets Accounts receivable Inventory Equipment Less: Accumulated depreciation $ 552,000 69,000 $ 20,500 520,000 157,500 Equipment, net Total assets Liabilities and Equity Liabilities Accounts payable Loan payable Taxes payable (due March 15) Equity Common stock Retained earnings Total stockholders' equity Total liabilities and equity 483,000 $ 1,181,000 $ 370,000 12,000 89,000 $ 471,000 $ 473,000 237,000 710,000 $ 1,181,000 To prepare a master budget for January, February, and March, use the following information. a. The company's single product is purchased for $30 per unit and resold for $59 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, 7,250 units; February, 9,000 units; March, 10,500 units; and April, 10,500 units. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $248,325; February. $735,961; March, $527,917. c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $327,800; March, $147,000. d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $6,500 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, $36,000; February. $96,000; and March, $21,600. Budgeted depreciation expense is January, $ 6,125,