Dimsdale Sports, a merchandising company reports the following balance sheet at December 31 DERSOALE SPORTS COMPANY Dalance sheet December 31 Assets $ 20, Accounts receivable $20,000 Inventory 1e5, eee Equipment $ 576,00 Less: Accumulated depreciation 72.000 Equipment, net 584,000 Total assets $ 1,149,000 Liabilities and Equity Llabilities Accounts payable 5 375,00 Loan payable 11,600 Taxes payable (due March 15) 55,00 $ 474,000 Equity Con stock $ 47,500 Metained earnings 201, 500 Total stockholders' equity 675,000 Total liabilities and equity $ 1,149,00 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 5.250 units on December 31 is more than management's desired level, which is 20% of the next month's budgeted sales unes Budgeted sales are January 6,750 units, February 9,000 units: March 10.750 units, and April 10,500 units. Al sales are on credit b. Cath receipts from sales are budgeted as follows: January, $262.300: February, S726105: March. $509,635 Cash payments for merchandise purchases are budgeted as follows: January, $65.000: February: $323,200. March 590 200 d. Sales commissions equal to 20% of sales dollars are pand each month. Sales salaries (excluding commissions) are $6,500 per mont e. General and administrative salaries are $12.000 per month Maintenance expense equals $1.900 per month and is paid in cash New equipment purchases are budgeted as follows January $36.000. February, 5100.800; and March, $26.400, Budgeted deprecianon expense is January $6.375, February. 57,425, and March, $7,700 9. The company budgets a land purchase at the end of March at a cost of $160,000, which will be paid with cath on the last day of the month n. The company has an agreement with its bank to obtain additional loans as needed. The interest rate is 15. per month and interestis Dard at each month-end based on the beginning month balance Partial or full payments on these loans are made on the last day of the month. The company maintains a minimum ending cash balance of $20,000 at the end of each month The income tax rate for the company is 35%. Income taxes on the first quarters income will not be paid until April 15 Required: Prepare a master budget for the month of January February, and March that has the following budgets 1 Sales budgets 2. Merchandise purchases budgets 3. Seing expense budgets 4. General and administrative expense budgets. Hin Depreciation is included in the general and administrative budget for .. The company's single product is purchased for $20 per unit and resold for $56 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 9,000 units, March 10,750 units, and April 10,500 units. All sales are on credit b. Cash receipts from sales are budgeted as follows: January, $262,300, February. $726,105March $509,635. c. Cash payments for merchandise purchases are budgeted as follows: January. $65.000. February. $323.2007 March $90,200. 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 $1,900 per month and is paid in cash. f. New equipment purchases are budgeted as follows: January, $36,000: February, $100,800; and March, $26,400. Budgeted depreciation expense is January, $ 6,375. February, $7.425, and March. 57700 g. The company budgets a land purchase at the end of March at a cost of $160,000, which will be paid with cash on the last day of the month h. The company has an agreement with its bank to obtain additional loans as needed. The Interest rate is 1% per month and interest is pald at each month-end based on the beginning.month balance. Partial or full payments on these loans are made on the last day of the month. The company maintains a minimum ending cash balance of $20,000 at the end of each month 1. The income tax rate for the company is 35% Income taxes on the first quarter's Income will not be paid until April 15. 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 3. Budgeted balance sheet as of March 31 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Required 6 Required 7 Required 8 Sales budgets DOMSDALE SPORTS Sales Budget January February March Total 6. Cash budgets. 7. Budgeted Income statement for entire quarter (not monthly ended March 31 8. Budgeted balance sheet as of March 31 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required s Required 6 Required 7 Required 8 Sales budgets. DIMSDALE SPORTS Sales Budget January February March Totals Budgeted sales units Selling price per unit Total budgeted sales Required 2 > C 7. Budgeted Income statement for entire quarter (not monthly) ended March 31. 8. Budgeted balance sheet as of March 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Selling expense budgets. DIMSDALE SPORTS Selling Expense Budget January February March Budgeted sales Sales commissions 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Capital expenditures budgets. DIMSDALE SPORTS Capital Expenditures Budget January February March Total capital expenditures Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 En Required 6 Required 7 Required 8 Budgeted income statement for the entire first quarter (not for each month). (Round your final answers to the nearest whole dollar) DIMSDALE SPORTS CO. Budgeted Income Statement For Three Months Ended March 31 Selling general and administrative expenses Total operating expenses Required 1 Required 2 Required 3 Required 4 Required 5 022206 Required 6 Required 7 Required B Budgeted balance sheet as of March 31. (Round your final answers to the nearest whole dollar.) DIMSDALE SPORTS CO. Budgeted Balance Sheet March 31 Assets Total current assets Equipment, Net Total assets Liabilities and Equity Liabilities Total liabities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity