Salsnce Sheet Decenber 31 Assets Cash Accounts receivable Inventory Equipment Less: Accumulated depreciation Equipment, net Total assets Liabilities and Equity Liabilities Accounts payable Loan payable Taxes payable (due march IS) DIMSDALE SPORTS company S 2e,eee sze,eee 483 , 177,eee E9,eee 9s,eee S ss2,eee ss,eee S yss,eee 14, eve se,eee S 472,eee Equity Ccmzn stock Retained earnings Total stockholders' Total liabilities and equity equity To prepare master budget for January. February. and Merch. use the followlng Informallom e. The compony's slngle product Is purchased for S20 per unlt and resold for S56 per unll_ The Inventory level of 4.750 unlts on December 31 Is more than management's deslred level, vvhlch Is of the next month's budgeted soles unrs_ Budgeted soles ore January, 6,750 unlts; February, g,250 unlts; March, 11,250 unlts, and Apr", 10,000 unlte All soles are on credlt_ b. Cash recelpts from sales are budgeted as follows: January, S257,300, February, S731,og1; March, S523,530_ c. Cash payments for merchandlse purchases are budgeted as follows January, $70,000: February, $310,400; March, SIOO,200. d. Seles commlsslons equal to 20% of sales dollars are each month Soles selerles (excludlng commlsslons) are $6,500 per montm e. General and admlnlstratlve salarles are $11,000 per montm Molntenence expense equals S2.100 per month end Is pold In cash. f. New equlpment purchases ere budgeted as follows: January, S33,600; February, SIOO,800; and March, S21,600. Budgeted depreclatlon expense Is January, $ 6,100; February, $7,150; and March, $7,375 g. The compony budgets a land purchase the end of March cost of $150,000, whlch wlll be pald wlth cash on the lest day of the montm h. The compony has en agreement wlth Its bank to obtaln addltlonal loans as needed. The Interest rate Is 1% per month and Interest Is pold each month-end based on the beglnmng-month balance Partlal or full payments on Tese loans are made on the last day of the month The company malnZ[ns mlnlmum endlng cosh balance of S20,OOO at the end of each montm l. The Income tax rate for the company Is Income taxes on the first quarter's Income wlll not be pald untll Aprll 15_ Requlred: Prepare a master budget for the months of January. February, and March tho: has the followlng budgets: 1. Sales budgets. 2. Merchendlse purchases budgets. 3. Selllng expense budgets 4. General end admlnlstrotlve expense budgets. H/nt: Depreclatlon Is Included In the general and admlnlstratlve budget for merchendlsers S. Capltel expendltures budgets. 6. Cash budgets 7. Budgeted Income statement for entlre quarter (not monthty) ended Merch 31. 8. Budgeted balance sheet es of March 31