Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31. Cash Accounts receivable Inventory Equipment Assets DIMSDALE SPORTS COMPANY Liabilities Less: Accumulated depreciation Total assets Balance Sheet December 31 Liabilities and Equity Accounts payable Loan payable Taxes payable (due March 15) Equity $ 564,000 70,500 $ 350,000 14,000 88,000 $ 472,000 253,000 $ 21,000 520,000 142,500 493,500 $ 1,177,000 452,000 Common stock Retained earnings Total liabilities and equity To prepare a master budget for January, February, and March, use the following information. 725,000 $ 1,177,000 a. The company's single product is purchased for $30 per unit and resold for $60 per unit. The inventory level of 4,750 un December 31 is more than management's desired level, which is 20% of the next month's budgeted sales units. Budget January, 7,000 units; February, 9,000 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, $272,000; February, $750,530; March, $556,830. c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $309,300; March, $15 d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $6,50

Complete this question by entering your answers in the tabs below. Merchandise purchases budgets. Complete this question by entering your answers in the tabs below. Sales budgets. Complete this question by entering your answers in the tabs below. General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. Complete this question by entering your answers in the tabs below. Selling expense budgets. \begin{tabular}{|c|c|c|c|} \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Total cash payments & 0 & 0 & 0 \\ \hline \multicolumn{4}{|l|}{ Preliminary cash balance } \\ \hline & & & \\ \hline \multicolumn{4}{|l|}{ Ending cash balance } \\ \hline \multicolumn{4}{|c|}{ Loan balance } \\ \hline & January & February & March \\ \hline \multicolumn{4}{|l|}{ Loan balance - Beginning of month } \\ \hline \multicolumn{4}{|l|}{ Additional loan (loan repayment) } \\ \hline \multicolumn{4}{|l|}{ Loan balance - End of month } \\ \hline \end{tabular} Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31 . 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 $60 per unit. The inventory level of 4,750 ur December 31 is more than management's desired level, which is 20% of the next month's budgeted sales units. Budget January, 7, 000 units: February, 9,000 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, $272,000; February, $750,530; March, $556,830. c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $309,300; March, $19 d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $6,50 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, 7,000 units; February, 9,000 units; Mareh, 11,250 units; and April, 10,000 units. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $272,000; February, $750,530; March, $556,830. c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $309,300; March, $153,900. 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 $13,000 per month. Maintenance expense equals $2,000 per month and is paid in cash. f. New equipment purchases are budgeted as follows: January, $38,400; February, $93,600; and March, $21,600. Budgeted depreciation expense is January, $6,275; February, $7,250; and March, $7,475. 9. The company budgets a land purchase at the end of March at a cost of $180,000, 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 bans are made on the last day of the month. The company maintains a minimum ending cash balance of $21,000 at the end of each month. i. The income tax rate for the company is 39%. 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 stotement for entire quarter (not monthly) ended March 31. 8. Budgeted balance sheet as of March 31 . 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. Capital expenditures budgets. \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ DIMSDALE SPORTS COMPANY } \\ \hline \multicolumn{2}{|c|}{ Budgeted Income Statement } \\ \hline & & \\ \hline & & \\ \hline Selling, general and administrative expenses & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total operating expenses & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Cash budgets. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)