Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31.

DIMSDALE SPORTS COMPANY

Balance Sheet

December 31

Assets

Cash

$ 22,000

Accounts receivable

520,000

Inventory

105,000

Equipment

$ 552,000

Less: Accumulated depreciation

69,000

483,000

Total assets

$ 1,130,000

Liabilities and Equity

Liabilities

Accounts payable

$ 350,000

Loan payable

12,000

Taxes payable (due March 15)

90,000

452,000

Equity

Common stock

$ 473,500

Retained earnings

204,500

678,000

Total liabilities and equity

$ 1,130,000

To prepare a master budget for January, February, and March, use the following information.

a The companys single product is purchased for $20 per unit and resold for $60 per unit. The inventory level of 5,250 units on December 31 is more than managements desired level, which is 20% of the next months budgeted sales units. Budgeted sales are January, 7,500 units; February, 8,750 units; March, 10,750 units; and April, 11,000 units. All sales are on credit.

b Cash receipts from sales are budgeted as follows: January, $255,000; February, $743,350; March, $539,475.

c Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $301,000; March, $100,600.

d Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $5,000 per month.

e General and administrative salaries are $11,000 per month. Maintenance expense equals $1,900 per month and is paid in cash.

f New equipment purchases are budgeted as follows: January, $38,400; February, $103,200; and March, $24,000. Budgeted depreciation expense is January, $ 6,150; February, $7,225; and March, $7,475.

g The company budgets a land purchase at the end of March at a cost of $155,000, 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 paid 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 $22,000 at the end of each month.

i The income tax rate for the company is 41%. Income taxes on the first quarters 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:

7. Budgeted income statement for entire quarter (not monthly) ended March 31.

Budgeted income statement for the entire first Complete this question by entering your answers in the tabs below. Budgeted income statement for the entire first quarter (not for each month). (Round your final answers to the nearest whole dollar.) 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 $20 per unit and resold for $60 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, 7,500 units; February, 8,750 units; March, 10,750 units; and April, 11,000 units. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $255,000; February, $743,350; : March, $539,475. c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $301,000; March, $100,600 d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $5,000 per month. e. General and administrative salaries are $11,000 per month. Maintenance expense equals $1,900 per month and is paid in cash. f. New equipment purchases are budgeted as follows, January, $38,400; February. $103,200; and March, $24,000. Budgeted depreciation expense is January, $6,150; February, $7,225; and March, $7,475. g. The company budgets a land purchase at the end of March at a cost of $155,000, which will be paid with cash on the last day of the month. Budqeted income statement for the entire firs DIMSDALE SPORTS CC Budgeted Income Stat For Three Months Ended Selling, general and administrative expenses Retained earnings Salaries payable Sales Sales commissions expense Sales salaries expense Budgeted income statement for the entire first quarte dollar.) Budgeted income statement for the entire first qu dollar.) g. The company budgets a land purchase at the end of March at a cost of $155,000, 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 paid 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 $22,000 at the end of each month. i. The income tax rate for the company is 41%. 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 qhe 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 . 8. Budgeted balance sheet as of March 31 . Complete this question by entering your answers in the tabs below. Budgeted income statement for the entire first quarter (not for each month). (Round your final answers to the nearest whole dollar.)