Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31. $ 20,500 520, eee 142,500 DIMSDALE SPORTS COMPANY Balance Sheet December 31 Assets Cash Accounts receivable Inventory Equipment $ 576,000 Less: Accumulated depreciation 72,00 Equipment, net Total assets Liabilities and Equity Liabilities Accounts payable $365,000 Loan payable 13,00 Taxes payable (due March 15) 92,00 Equity Common stock $ 473,5ee Retained earnings 243,500 Total stockholders' equity 504, cee $ 1,187,000 $ 470,000 717, eee Total liabilities and equity $ 1,187, eee To prepare a master budget for January, February, and March, use the following Information. a a. The company's single product is purchased for $30 per unit and resold for $60 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, 8,750 units; March, 11,500 units; and April, 11,000 units. All sales are on credit b. Cash receipts from sales are budgeted as follows: January, $241,500; February, $741,775; March $545,100. c. Cash payments for merchandise purchases are budgeted as follows: January, $60,000; February, $327,500; March, $145,800. d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $7,000 per month e. General and administrative salaries are $12,000 per month. Maintenance expense equals $1,800 per month and is paid In cash. f. New equipment purchases are budgeted as follows: January, $33,600; February, $93,600; and March, $26.400. Budgeted depreciation expense is January, $ 6,350; February, $7,325; and March, $7,600. g. The company budgets a land purchase at the end of March at a cost of $140,000, 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 $20,500 at the end of each month. I. The Income tax rate for the company is 35%. Income taxes on the first quarter's Income will not be paid until April 15. 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 Requi Cash budgets. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sig final answers to the nearest whole dollar.) DIMSDALE SPORTS COMPANY Cash Budget January February March Beginning cash balance Total cash available Less: Cash payments for: Total cash payments 0 0 0 Preliminary cash balance Ending cash balance Loan balance January February March Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 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 Budgeted income statement for the entire first quarter (not for each month). (Round your final answers to the nearest w dollar) DIM SDALE SPORTS COMPANY Budgeted Income Statement For Three Months Ended March 31 Selling, general and administrative expenses Total operating expenses 0 0 S 0 Required 6 Required 8 > 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 Budgeted balance sheet as of March 31. (Round your final answers to the nearest whole dollar.) DIMSDALE SPORTS COMPANY Budgeted Balance Sheet March 31 Assets Total current assets 0 Equipment, Net Total assets Liabilities and Equity Liabilities Total liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity