DIMSDALE SPORTS COMPANY Balance Sheet December 31 Assets Cash $ 20, 500 Accounts receivable 520, 000 Inventory 100, 000 Equipment $ 528, 000 Less: Accumulated depreciation 66, 000 000 790 Total asset's $ 1, 102, 500 Liabilities and Equity Liabilities es Accounts payable $ 375, 090 Loan payable 14, 000 Taxes payable (due March 15) 91, 000 480,000 Equity Common stock $ 471, 000 Retained earnings 151, 500 622, 500 Total liabilities and equity $ 1, 102, 500 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 $57 per unit. The inventory level of 5,000 u 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, 9,500 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, $269,650; February, $742,916; March, $532,167. c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $325,600; March, $101 d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $6,00 month. e. General and administrative salaries are $13,000 per month. Maintenance expense equals $2,000 per month and is paid in f. New equipment purchases are budgeted as follows: January, $38,400; February, $93,600; and March, $24,000. Budgete depreciation expense is January, $ 5,900; February, $6,875; and March, $7,125